Benzingaยท2025-04-08 15:25Core Viewpoint - Alphabet Inc.'s stock is showing strong bearish signals, with a potential 'Death Cross' formation indicating a possible downtrend ahead [1][2]. Stock Performance - Alphabet's stock has fallen to $146.75, significantly below its 50-day simple moving average of $174.39 and 200-day SMA of $174.21 [1]. - The stock has dropped nearly 5% over the past week, resulting in a year-to-date loss of 22.5% [3]. Technical Indicators - The stock is trading below all key exponential moving averages, with a Relative Strength Index (RSI) of 29.94, indicating it is in oversold territory [2]. - The Moving Average Convergence Divergence (MACD) shows a negative reading of 6.71, reinforcing the bearish outlook [2]. Strategic Moves - Alphabet's recent $32 billion acquisition of cybersecurity firm Wiz has raised questions among investors regarding its strategic intent in a competitive cloud market [4]. - The upcoming annual cloud conference on April 9 is anticipated to address generative artificial intelligence developments, although current sentiment remains muted [5]. Macro Environment - Concerns over tariffs and rising recession risks are negatively impacting Alphabet's core advertising business [6]. - JPMorgan has reduced its price target for Alphabet from $220 to $180 and lowered 2025 search ad growth estimates from 9% to 3% [6]. - Alphabet continues to face antitrust scrutiny from the Department of Justice, further eroding Wall Street's confidence [6].