Alphabet Inc (GOOGL) shares have continued to decline since our last analysis on July 24th, despite the company’s previous earnings report beating analyst expectations. While the broader market downturn on August 5th exacerbated the decline, GOOGL has underperformed the overall index since then.
Factors Weighing on Alphabet
Several factors are contributing to the bearish sentiment surrounding Alphabet. The delay in showcasing the full capabilities of the Gemini AI assistant at the “Made by Google” event has dampened investor enthusiasm. Additionally, speculation about a potential breakup of Google under US antitrust laws has created uncertainty.
Technical Analysis
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From a technical perspective, GOOGL has broken below its ascending channel and the crucial $164 support level. Price action is forming an expanding fan pattern, indicating potential for further downside. If bulls can reclaim the $164 level, the next resistance point lies at the subsequent fan line.
Analyst Sentiment
Despite the recent price decline, analyst sentiment remains bullish on Alphabet. Of the 37 analysts surveyed by TipRanks, 30 recommend buying GOOGL shares, with no sell recommendations. The average price target for the next 12 months is $204.74, representing a potential upside of 24.72% from yesterday’s closing price.
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