On July 16, Alphabet’s stock experienced a significant drop of 4.4%, erasing approximately $200 billion in market capitalization. This decline was primarily triggered by a report from Bloomberg indicating that the Gemini 3.5 Pro AI model is behind schedule by several months.
Market Reaction
Following the news, GOOGL closed at $354.46, falling below key moving averages EMA20 at $359.93 and EMA50 at $359.38 which have now turned into resistance levels. The session opened at $373.20 but plummeted during the day, reflecting strong selling pressure without substantial buying interest.
The daily RSI14 indicator now sits at 46.21, indicating a deteriorating momentum while remaining shy of the oversold territory. Conversely, the hourly RSI14 stands at 35.04, reinforcing short-term bearish trends. Market observers note that the critical price range for upcoming trading sessions is between $346 and $356; a close below $346.10 could signal a further decline.
Despite the bearish sentiment highlighted by the recent price action, Buffett's interest in GOOGL suggests potential long-term confidence in Alphabet's prospects.
This material is for informational purposes only and should not be considered financial advice.
