Alphabet Inc. (GOOG) just closed the day with a sharp drop of over 8%, marking one of its biggest single-day losses in years. This massive sell-off has triggered a wave of concern across the market, and based on the current chart setup, things might get even more bearish.
What’s Dragging the Stock Down?
Here are three major reasons behind this steep decline:
1. Apple Exploring New Search Engines
Apple is reportedly testing AI-based search options like ChatGPT and Perplexity AI, which could eventually replace Google as the default search engine on Safari. This puts a $20 billion-a-year deal at risk, creating real pressure on Google’s future search dominance.
2. Massive Spending on AI Infrastructure
Google is planning to pour around $75 billion into its AI ecosystem this year—a huge jump from last year. Investors are nervous that this level of spending won’t pay off fast enough, especially with competitors offering leaner and smarter AI solutions.
3. Cloud Growth Slowing Down
Google’s cloud division is still growing, but not as fast as before. Slower revenue growth here is raising eyebrows, especially since rivals like Microsoft and Amazon are pulling ahead in the cloud war.
Technical Outlook: What’s Next?
From a technical perspective, if GOOG breaks below the key support level of $149.66 tomorrow, we could see it quickly head down to the $142 zone. This level acted as support in the past and could be the next target if the sell-off continues.
All major signals from candlestick analysis point to strong bearish momentum—both on the weekly and monthly charts. If you’re using my Bullish-Bearish strategy, tomorrow’s setup might offer a good opportunity to capitalize on short-term moves, especially if price action confirms the breakdown.
Keep a close eye on tomorrow’s opening. If it opens weak and pushes below $149.66 with volume, that could be your confirmation.