The Trump Dump is starting; Get out of stocks now? (From Paradigm Press) |
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Key Points |
Alphabet's latest earnings beat expectations and helped ease concerns around its AI and search strategy, sparking renewed investor confidence. Cathie Wood's ARKW just bought roughly $35 million of Alphabet stock, and institutional net inflows hit $44B over the past year. Shares are up 21% on the quarter and back in positive territory YTD, with key support levels at $190 and $180 as the stock establishes a new uptrend.
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Alphabet (NASDAQ: GOOGL) has been under a microscope this year, with investors closely watching its progress in AI and cloud and ongoing questions about competitive threats. But its recent quarterly earnings have helped ease many of those concerns. |
The report not only beat expectations but also reaffirmed confidence in the company's core businesses and its long-term AI positioning. As a result, sentiment around the stock has meaningfully shifted, both on Wall Street and among institutional investors. |
The strong showing has sparked renewed buying activity, led by Cathie Wood's ARK Investment Management. Wood's flagship ARK Next Generation Internet ETF (NYSEARCA: ARKW) added 181,640 shares of Alphabet worth roughly $35 million this week. It's a clear signal of confidence in Google's AI and cloud roadmap, and part of a broader rotation into tech and biotech names as Wood reallocates and adjusts her sector exposure. |
Institutional interest has been building consistently over the past year. Data shows that over the last 12 months, GOOGL has seen $95 billion in inflows from institutions, against just $51 billion in outflows, representing a solid net inflow of $44 billion. That's a decisive vote of confidence in a mega-cap tech name that many investors had written off earlier in the year. |
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Wall Street Follows With Upgrades |
It's not just ARK getting more bullish. Wall Street analysts have also taken notice. Alphabet now holds a consensus Moderate Buy rating across 43 covering analysts. Significantly, the average price target has moved sharply higher following earnings, from $199.95 to $211.39. |
Nearly 20 analysts raised their price targets immediately after the results, highlighting the strength of the quarter and the company's commentary on AI monetization. Barclays lifted its target from $220 to $235, Citigroup bumped its forecast from $203 to $225, and JPMorgan followed suit with a new $232 target, up from $200. |
The report seems to have put to rest some of the lingering skepticism around Alphabet's ability to compete in the AI race. With cloud revenue accelerating and solid performance from Search and YouTube, investors are starting to appreciate the breadth and durability of Google's ecosystem again. |
Stock Reclaims Ground and Turns Positive YTD |
Alphabet stock has been quietly staging a turnaround. After lagging for much of the year, shares are now back in positive territory for 2025, up just over 1% year-to-date. The recovery has been swift, with the stock rising nearly 21% in the quarter alone. |
From a technical perspective, the stock remains in a strong uptrend. Key areas to watch include $190, which may act as a near-term support, and $180, previously a major breakout level that could serve as a higher-timeframe support zone. |
Investors looking for an entry may want to wait for the stock to establish a higher low and confirm continuation within this new trend. |
Despite the recent rally, GOOGL still appears attractive from a valuation standpoint. It trades near its historical average P/E multiple, which adds to the case for further upside if earnings momentum continues. |
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Tesla's wild price swings may not be random after all.
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Positioned to Lead in H2 |
With earnings concerns out of the way and bullish sentiment from both institutions and analysts building, Alphabet appears well-positioned heading into the year's second half. AI, cloud, services, and YouTube all remain key growth drivers, and the company's scale and profitability give it ample flexibility to invest and stay ahead of the curve. |
If momentum holds and the stock finds support at current levels, it may not be long before Alphabet reclaims its previous resistance near $200 and pushes beyond. |
Written by Ryan Hasson |
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