GOOG – Weekly Chart
The price of GOOG has sold off and sets up a potential top on the weekly level that could lead to a larger correction. The $151 level is the likely target in the next few weeks.
Google parent Alphabet’s stock plunged by more than 8%, leading to a more than $200 billion loss in market value, after the search giant unveiled plans for a massive uptick in AI-related spending despite slowing revenue.
Alphabet CEO Sundar Pichai said that DeepSeek had done “very, very good work” but asserted that Google’s AI products were “some of the most efficient models out there”.
“While the Cloud segment delivered revenue growth of 30%+ for a second consecutive quarter, results were slightly below investor expectations,” Wedbush analyst Dan Ives noted. “That said, management commentary was positive and indicated that demand outpaced available capacity in the quarter”.
“The more aggressive pace of investment should alleviate capacity constraints as AI demand continues to scale,” Ives added.
Tech stocks were also hit as China reacted to the Trump tariffs and antitrust action against Nvidia and Google.
Antitrust investigators are said to be examining whether the Android operating system harms Chinese smartphone makers like Oppo and Xiaomi. The probe dates back to 2019 and hit the headlines once again in December 2024 when China reopened the probe.
The move also seems like a push against Donald Trump and his policies as tariffs were enacted. The price of tech heavyweights like Nvidia and Google are highlighting the potential for a larger correction in tech stocks.
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