Alphabet stock recovers from sharp selloff as investors refocus on Anthropic cloud deal

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Sholanke Dele

22.10.2025

Alphabet stock recovers from sharp selloff as investors refocus on Anthropic cloud deal — Alphabet shares recover toward record highs

Alphabet Inc. (GOOGL) stock price rebounded strongly on Wednesday after heavy selling pressure the previous day triggered its sharpest single-session loss in two weeks.

On Tuesday, GOOGL fell nearly 5% from its record close of $256.7 to a five-day low at $243.7 as speculation grew that OpenAI could be developing an artificial intelligence-powered web browser. The rumoured project, if confirmed, could directly challenge Google Chrome’s dominant position as the world’s most used browser and threaten one of Alphabet’s most valuable gateways for ad-driven revenue.

- Alphabet stock rebounds from 20-day EMA support as AI partnership news boosts sentiment.

- Buyers defend $244 level, driving GOOGL recovery toward $260 record target this week.

- Anthropic-Google cloud deal talks ease investor concerns over OpenAI browser competition threat.

Google Chrome, with an estimated 3.4 billion users globally, plays a pivotal role in driving search queries and digital ad impressions. The possibility of an OpenAI-backed browser, supported by Microsoft, raised concerns among investors about future competition in web navigation and search. The report prompted a wave of short-term selling that temporarily broke the stock’s six-day winning streak. However, the 20-day EMA provided strong technical support near $244, cushioning the fall and allowing a partial recovery into the close at $250.45, which reduced Tuesday’s overall loss to 2.4%.

GOOGL stock price dynamic (Sept - Oct 2025). Source: Tradingview

During Wednesday’s premarket session, GOOGL stock extended its rebound by about 1.8%, trading around $254.7 as investors refocused on positive corporate developments. Reports suggested that Anthropic is in advanced discussions with Google to secure cloud computing resources valued in the tens of billions of dollars. If finalised, the agreement would strengthen Alphabet’s cloud infrastructure business, positioning it to capture a larger share of enterprise AI workloads.

GOOGL rebound fueled by hopes of major Anthropic cloud-computing agreement

The potential deal aligns strategically with Alphabet’s ongoing push to expand its cloud segment, which has become one of its fastest-growing revenue drivers. The news also reassured investors that Alphabet continues to play a central role in the generative AI ecosystem despite increasing competition from OpenAI and Microsoft.

Technically, the rebound from the 20-day EMA suggests that buyers are defending key support, and momentum could now shift back toward the all-time high near $257.6. If the rally extends into the cash session, a push toward $260 is likely, which would mark a new record high. The stock’s recovery reinforces the broader uptrend that began in early October, supported by both solid earnings prospects and growing confidence in Alphabet’s expanding AI partnerships.

Recently we recently discussed Alphabet hitting a new all-time high at $257 before a mild pullback toward $247 support. Scotiabank lifted its price target to $310, citing cloud profitability and AI expansion.

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