GOOGL Stock Dips 2% Ahead of Earnings, Amid Legal Heat for Google Search
Alphabet’s stock (GOOGL) is facing headwinds from regulatory scrutiny and broader tech-sector volatility just ahead of its key Q1 earnings.
Quick overview
- Alphabet's stock (GOOGL) has faced volatility due to regulatory scrutiny and broader tech sector challenges ahead of its Q1 earnings report.
- After a brief recovery, shares dropped from $151.22 to $147.55, indicating fragile investor sentiment.
- The company is grappling with legal battles over alleged monopolistic practices, which may impact long-term investor confidence.
- Despite expectations for modest growth in Q1 earnings, regulatory uncertainties and competition in AI and digital ads pose significant risks.
Alphabet’s stock (GOOGL) is facing headwinds from regulatory scrutiny and broader tech-sector volatility just ahead of its key Q1 earnings report.
Alphabet Stock Slips After Rebound, Struggles to Hold Momentum
Alphabet Inc. (NASDAQ: GOOGL) experienced a sharp pullback after a brief recovery last week, fueled by a temporary easing of trade tariffs. Shares closed last week at $151.22 before opening today with a gap down to $148.92—a clear sign that investor sentiment remains fragile.
The stock has had a turbulent ride since early February, when it reached a high of nearly $207. From there, it dropped steeply to a low of around $140 by early April, marking a 33% correction. While Alphabet briefly bounced off the 200-week simple moving average (SMA) in April, suggesting technical support, upward momentum has since stalled.
Google Stock Chart Weekly – Rejection at 100 SMA as Tech Pressures Mount
Despite the U.S. decision to reduce tariffs on a range of goods and electronics, the rally in GOOGL was capped at the 100-week SMA (green), a resistance level that the stock failed to clear last week. This coincided with renewed tensions in the U.S.–China chip war—adding more pressure to an already shaky tech sector.
Yesterday, Alphabet’s stock closed at $147.55, down roughly 2.5%, just a day before its scheduled Q1 earnings report. With tech peers also under pressure, investors are approaching tomorrow’s announcement cautiously.
Legal Clouds Gather Over Alphabet: DOJ Takes Aim
Adding to Alphabet’s challenges is a growing legal battle with the U.S. Department of Justice. Last year, a federal judge ruled that Google maintains an unlawful monopoly in the internet search market. Just two days ago, a second DOJ case also concluded that Google holds a similar monopoly in the adtech space.
At the heart of the DOJ’s argument is Google’s alleged use of exclusionary contracts to ensure it remains the default search engine on billions of devices worldwide. For instance, it’s claimed that Google paid Apple $20 billion in 2022 to remain the default engine on Safari.
While Alphabet’s valuation has become more attractive, these legal headwinds may dampen long-term investor confidence. District Judge Amit Mehta is expected to deliver a remedy ruling in August 2025, but Google has already confirmed it will appeal—meaning the antitrust saga could stretch on for years.
Alphabet Q1 Earnings: What to Expect
Alphabet will report Q1 earnings after the U.S. market closes tomorrow, and expectations point to modest growth despite the legal overhang. Analysts forecast earnings per share (EPS) of $2.03 on revenue of $89.2 billion—up from $1.89 EPS and $80.5 billion in revenue for the same period last year.
While these numbers suggest resilience in Alphabet’s core businesses, regulatory uncertainty and rising competition in AI and digital ads remain risks.
Outlook: GOOGL Stock at a Crossroads Technically and Fundamentally
Alphabet may deliver solid Q1 results, but the convergence of regulatory scrutiny, geopolitical instability, and technical resistance levels could limit near-term upside. With a crucial earnings report and legal decisions looming, the next few weeks could be pivotal in shaping the trajectory of GOOGL stock.
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