Alphabet (Google) – Is the Hype Over?

Over the past two years, Alphabet’s chart showed a clear direction: long was the way to go. However, a sharp drop following the latest earnings report has raised concerns – what does this mean for the stock?

From a fundamental perspective, Google’s earnings weren’t bad at all. The company only narrowly missed analysts’ estimates, yet the stock still plunged by double digits. This brings up the key question: Is the bullish trend coming to an end?

A look at the technicals provides some insights: Despite the significant gap down, Alphabet remains above a key support level around $186. As long as this level holds, buyers are likely to stay active, making a recovery towards $200 or higher a realistic scenario.

The outlook would become more bearish only if the stock breaks below the $186/$185 zone. In that case, a further decline towards $176 could be on the table.

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