Alphabet: Technical Momentum Is Starting to Turn

Key Points

• Alphabet has rebounded 24% from its lows and reclaimed its 200-day SMA, signaling a potential bullish trend reversal.
• Despite lagging peers in 2025, GOOGL maintains strong fundamentals, with dominant positions in search, YouTube, and growing AI and cloud capabilities.
• With earnings ahead and improving technicals, a breakout above $180 could confirm renewed momentum and upside potential.

Alphabet Inc. NASDAQ: GOOGL has trailed behind its mega-cap tech peers in 2025, with shares still down 7.8% year-to-date.

While the broader market, led by the technology sector and many of the Magnificent Seven members, continues to hit new highs, GOOGL has remained one of the few laggards. 

However, recent price action and improving technical structure suggest that the tide may be turning in favor of the bulls.

A Bullish Reversal Taking Shape

Technically speaking, Alphabet stock is showing early signs of a trend reversal. Shares have now bounced more than 24% off their 52-week low, which technically puts the stock back in bull market territory. More importantly, GOOGL has reclaimed its 200-day simple moving average (SMA), a widely followed level that many consider the line between long-term uptrends and downtrends.

The reclaim of the 200-day SMA, particularly following several weeks of consolidation and underperformance, could signal a significant shift in sentiment and momentum. The next key level to watch is the $180 area, which has acted as strong resistance in recent months. A decisive breakout above that level is likely to confirm a shift in the trend, opening the door for a potential upside move toward $190 and beyond.

The technical picture will remain constructive as long as the stock remains above its 200-day moving average and continues to build higher lows.

Still Behind the Pack, But Positioning Improves

Despite the recent rally, GOOGL remains an underperformer in 2025 compared to notable names such as NVIDIA, Meta, and Microsoft. Much of the recent lag is attributed to concerns surrounding AI monetization, increasing regulatory pressure in both the U.S. and Europe, and growing competition in the digital advertising and cloud infrastructure sectors.

Still, the company’s fundamentals remain strong. Alphabet remains the global leader in search, holds dominant positions in YouTube and Android, and is aggressively expanding its AI capabilities through Gemini and AI Overviews. Meanwhile, its Google Cloud business continues to grow steadily, providing diversification beyond ad revenue.

Notably, the company has a history of operational discipline and capital efficiency. Alphabet reported solid Q1 results, beating top-line earnings expectations, and remains on track for substantial margin expansion through 2025. With nearly $100 billion in cash and cash equivalents on hand, Alphabet also has the flexibility to invest in growth, repurchase shares, or even increase its dividend yield. The point is, despite the challenges it faces, it remains in a position to deal with them head-on and from a position of strength.

Earnings and Catalysts Ahead

Looking ahead, Alphabet is set to report Q2 earnings on July 22.

And while the stock hasn’t participated in the broader rally just yet, its recent technical strength heading into earnings could be a positive signal. 

Should the company deliver another strong report and provide upbeat forward guidance, particularly around AI initiatives, its cloud business, or advertising, it could be the catalyst GOOGL needs to break through resistance decisively.

The improving chart structure, combined with strong fundamentals and low expectations relative to its peers, sets the stage for a potential catch-up trade.

In a market where many tech stocks are priced for perfection, Alphabet’s historically low P/E of 19.44 and forward P/E approaching the mid-teens gives it a more reasonable entry point for investors seeking both quality and value.

One to Watch as Momentum Builds

While Alphabet has lagged in 2025, it now finds itself in a position of growing technical strength. A 24% rebound from the lows and a reclaim of the 200-day moving average mark a notable change in trend. If GOOGL can continue to consolidate and push above the $180 resistance level, it could confirm a longer-term shift that rewards patient bulls.

For investors looking for a high-quality name with improving momentum, a dominant market position, and upside potential into the second half of the year, Alphabet is one to watch closely.