Alphabet’s Stock Faces ‘Death Cross’ Amid Investor Hesitation

Alphabet Inc.’s GOOGL GOOG stock is on the verge of forming a ‘Death Cross,’ signaling caution for investors.

Chart created using Benzinga Pro

Alphabet’s stock recently dropped to $146.75, significantly below its 50-day simple moving average of $174.39 and its 200-day SMA of $174.21. This downward trend raises concerns among investors.

The ‘Death Cross’ occurs when the 50-day moving average falls beneath the 200-day moving average. This pattern traditionally signals the potential onset of a downtrend, and Alphabet’s stock is approaching that threshold.

Read also: Apple Stock’s Death Cross: Is The iPhone Maker Heading For A Difficult Summer?

Technical Indicators Suggest Bearish Trends for Alphabet Stock

Currently, the stock trades below all major exponential moving averages, from the five-day to the 50-day. It features a Relative Strength Index (RSI) of 29.94, categorizing it in oversold territory. Additionally, the Moving Average Convergence Divergence (MACD) shows a negative 6.71, further confirming a bearish outlook.

Despite minimal buying pressure, the stock has declined nearly 5% over the last week, accumulating a year-to-date loss of 22.5%.

Read also: Apple, Facebook, and Google Engaged in Trade Tensions: EU Threatens Action, UK Proposes Tax Relief

Acquisition and Growth Prospects Clouded

Alphabet’s recent $32 billion acquisition of the cybersecurity firm Wiz has left market participants uncertain. Some analysts question whether this is a defensive strategy given the challenging cloud market, or if it aims to counter competition from Amazon.com Inc AMZN and Microsoft Corporation MSFT. Thus far, this strategic move has not garnered positive reactions from investors.

With its annual cloud conference set for April 9, many are eager to see if announcements regarding generative artificial intelligence can improve market sentiment. However, expectations remain tempered.

Broader Concerns Impact Alphabet’s Performance

Wider economic concerns related to tariffs and inflation are pressuring Google’s core advertising business. JPMorgan recently lowered its price target for Alphabet to $180 from $220 and revised its 2025 search ad growth estimate down to just 3% from a previous 9%.

Additionally, Alphabet continues to contend with antitrust scrutiny from the Department of Justice, further compounding investor concerns.

As a result, investor confidence is waning, mirroring the declines in Alphabet’s moving averages.

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