Alphabet (GOOGL) stock trades below its 200-day moving average by the widest margin in 17 months, Barchart data show. AI spending fears pushed shares near $317 ahead of Wednesday’s third-quarter (Q3) earnings.
Wall Street sees a different picture. Twelve of 13 analysts tracked by Visible Alpha rate GOOGL a buy. Their average $433 target sits 35% above Friday’s close.
Why a Beat May Not Be Enough for Alphabet Stock
Analysts expect Q3 revenue near $127.9 billion, roughly 25% higher year-over-year. Google Cloud sales are forecast to nearly double to $29.15 billion.
July offers a warning. Shares fell 7.1% after Q2 results, when adjusted earnings per share (EPS) missed by $0.04.
Alphabet also lifted 2026 capital expenditure (capex) guidance to $195 billion to $205 billion. Free cash flow then turned negative for the first time since its 2004 IPO.
That tension makes Big Tech earnings week a stress test. Options traders price a move of about 6% either way by Friday, above the stock’s 5.2% average post-earnings swing.
“The Cloud question is how much of the $514 billion backlog converts as capacity arrives.”
Dan Ives, global head of technology research at Wedbush Securities, rates the stock Outperform.
Where Could Alphabet Stock Find Support After the Breakdown?
On the weekly chart, GOOGL broke below a symmetrical triangle formed after May’s $408 record.
The first downside target is the 0.382 Fibonacci retracement at $306. Below that, the 0.5 level sits near $275.
The pattern’s measured move points to $221, about 30% under the current price. That target lies between the 0.618 retracement at $243 and the 200-week moving average near $200.
The weekly Relative Strength Index (RSI) also broke a support trendline in place since April 2025.
“The bears have the technical advantage, but a swift recovery of support could quickly change that narrative.”
Jay Woods, chief global strategist at Freedom Capital Markets, offered that view. Reclaiming $331 to $345 would weaken the bearish setup.
Microsoft and Amazon also report this week. Investors already punish capex cuts and hikes, so Alphabet’s numbers could set the tone for the AI trade.
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