Watch These Alphabet Price Levels as Stock Tumbles After Earnings Report

Core Insights - Alphabet's shares experienced a significant decline due to weaker-than-expected cloud revenue overshadowing better-than-expected fourth-quarter earnings [2][11] - The company plans to invest approximately $75 billion in capital expenditures in 2025, primarily focused on expanding artificial intelligence infrastructure, which raised investor concerns regarding the timing of returns on this investment [2][3] Financial Performance - Despite the recent drop, Alphabet's stock has increased by 33% over the past 12 months, outperforming the S&P 500 during the same period [3] - The stock fell nearly 8% to around $190 in late trading following the earnings report [3][11] Technical Analysis - Alphabet shares had been trading in a narrow ascending channel for seven weeks before breaking out above this pattern [5] - The relative strength index (RSI) crossed above the 60 threshold prior to the earnings report, indicating bullish momentum [5] Support and Resistance Levels - Key support levels to monitor include $190, $180, $168, and $160, with $190 being a critical level due to its alignment with the ascending channel's lower trendline and the 50-day moving average [7][11] - A failure to maintain the $190 level could lead to a decline towards $180, where buying interest may emerge [7] - The $201 area is identified as a crucial overhead level to watch for potential recovery efforts [11][12]