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Is Alphabet Still a Buy Despite Legal Headwinds and Overbought Signals?
FX Empire· 2025-09-23 14:46
Core Insights - Google's stock price has shown strong momentum, reaching record highs near $250, indicating potential for further growth despite legal pressures [1][5] - The Department of Justice's antitrust case against Google is in the remedy phase, with calls for a forced sale of the AdX platform, which could impact investor sentiment [2] - Recent favorable legal outcomes, including a blocked breakup of the Chrome browser and the end of China's antitrust probe, have contributed to a 20% rally in Alphabet shares [3] Legal and Regulatory Environment - The antitrust trial is expected to influence investor sentiment, with testimonies from various stakeholders [2] - New policy risks from the Trump administration regarding H-1B visa fees could disrupt talent pipelines and affect long-term margins [4] Market Performance and Technical Analysis - Alphabet's stock has remained above $250, reflecting market confidence in its growth potential [5] - The long-term outlook remains bullish, with the stock trading within an ascending broadening wedge pattern, indicating potential volatility [6] - The target resistance level is identified in the $290-$300 range, with potential for significant corrections if approached [7] Growth Drivers - Ongoing demand for AI solutions and strong fundamental performance are expected to support Alphabet's growth outlook in the coming years [8]