Alphabet: Technical Momentum Is Starting to Turn

Core Viewpoint - Alphabet Inc. has underperformed compared to its tech peers in 2025, with shares down 7.8% year-to-date, but recent technical indicators suggest a potential bullish reversal [1][5][11] Technical Analysis - Alphabet's stock has rebounded over 24% from its 52-week low, indicating a return to bull market territory, and has reclaimed its 200-day simple moving average (SMA), which is a key indicator of long-term trends [1][2][11] - The next resistance level to watch is around $180, and a breakout above this level could signal a significant trend shift, potentially leading to price targets of $190 and beyond [2][11] Company Fundamentals - Despite recent underperformance, Alphabet maintains strong fundamentals, being a leader in search, YouTube, and Android, while also expanding its AI capabilities and growing its Google Cloud business [5][6][7] - The company reported solid Q1 results, beating earnings expectations, and is positioned for margin expansion through 2025, with nearly $100 billion in cash and cash equivalents available for investment or share repurchases [7] Earnings Outlook - Alphabet is set to report Q2 earnings on July 22, and strong performance in this report, particularly regarding AI initiatives and cloud business, could act as a catalyst for breaking through resistance levels [8][9] - The stock has a 12-month price forecast of $199.61, indicating a potential upside of 12.45%, with a moderate buy rating based on 43 analyst ratings [8][10] Market Position - Alphabet's historically low P/E ratio of 19.44 and forward P/E in the mid-teens provide a reasonable entry point for investors seeking quality and value [10] - The company is positioned for a potential catch-up trade as it shows improving momentum and a dominant market position [9][12]