Alphabet stock closed last week with a third straight daily gain, but renewed investor optimism about artificial intelligence
wasn’t enough to push it past a key technical barrier.
While the addition of AI
specialists to Google DeepMind has strengthened bullish sentiment, it remains to be seen if the stock can sustain the recent momentum. Shares of Alphabet (GOOGL) have been on an uptrend since July 8, rising from $174 to $182 as of the time of this publication.
AI Hiring Sparks Optimism, But Momentum Faces Technical
Hurdle
The market reacted favorably to news that Google DeepMind
had onboarded Windsurf CEO Varun Mohan, co-founder Douglas Chen, and several
senior R&D figures. The hires are seen as a strategic move to strengthen
Google’s position in the AI arms race, especially as Big Tech battles for
dominance in generative AI infrastructure and innovation.
Google hires Windsurf CEO Varun Mohan, others in latest AI talent deal https://t.co/p5KdqCHdSt
— CNBC (@CNBC) July 11, 2025
Despite this, Monday’s premarket session saw GOOGL shares
pull back by 2% to around $176, according to TradingView data. The dip likely reflects short-term
profit-taking after last week’s strong finish, rather than any fundamental
shift in investor sentiment.
Technical indicators, particularly the Relative
Strength Index (RSI) reading of 64, suggest there is still room for the stock
to move higher without entering overbought territory.
From a charting perspective, Alphabet’s price remains
confined to a range between $175 and $181. Breaking decisively above
the upper boundary could open the door for a move toward the next resistance at
$186. Until that breakout occurs, the stock is effectively range-bound, though
the broader uptrend over the past three months shows a bullish
outlook.
Alphabet stock daily chart, Source: TradingView
Still, potential headwinds linger. Alphabet continues to
face regulatory scrutiny related to antitrust investigations, and some
investors remain cautious about the pace of commercial AI integration,
especially as rivals push forward with monetizable products.
Broader Market Holds Steady as Tariff Threats Loom
Elsewhere in the market, major indexes were mixed. The Dow
Jones Industrial Average and S&P 500 each added 0.2%, while the Nasdaq rose
0.4%. Investors appeared to shrug off renewed trade tensions after President
Trump threatened 30% tariffs on imports from Mexico and the European Union,
effective August 1 unless new trade agreements are reached.
Trump intensifies trade war with threat of 30% tariffs on EU, Mexico
— Reuters (@Reuters) July 12, 2025
Tech stocks led the modest advance, with Meta and Broadcom
each gaining around 1%, while chip stocks lagged. Micron fell 4%, and Qualcomm
dropped 2% as semiconductor sentiment weakened. Crypto-related stocks also
rallied, driven by Bitcoin’s continued surge above $123,000.
Can Alphabet Break Through?
Investors will be watching Alphabet closely this week for
signs of a decisive breakout. With RSI momentum on its side and growing
confidence in the firm’s AI capabilities, the stock could be positioned to
overcome its current ceiling.
However, resistance at $181 has proven difficult
to breach. Whether the recent hires at DeepMind can translate into lasting
market confidence may determine if Alphabet’s fourth day of gains turns into
something more durable.
Alphabet stock closed last week with a third straight daily gain, but renewed investor optimism about artificial intelligence
wasn’t enough to push it past a key technical barrier.
While the addition of AI
specialists to Google DeepMind has strengthened bullish sentiment, it remains to be seen if the stock can sustain the recent momentum. Shares of Alphabet (GOOGL) have been on an uptrend since July 8, rising from $174 to $182 as of the time of this publication.
AI Hiring Sparks Optimism, But Momentum Faces Technical
Hurdle
The market reacted favorably to news that Google DeepMind
had onboarded Windsurf CEO Varun Mohan, co-founder Douglas Chen, and several
senior R&D figures. The hires are seen as a strategic move to strengthen
Google’s position in the AI arms race, especially as Big Tech battles for
dominance in generative AI infrastructure and innovation.
Google hires Windsurf CEO Varun Mohan, others in latest AI talent deal https://t.co/p5KdqCHdSt
— CNBC (@CNBC) July 11, 2025
Despite this, Monday’s premarket session saw GOOGL shares
pull back by 2% to around $176, according to TradingView data. The dip likely reflects short-term
profit-taking after last week’s strong finish, rather than any fundamental
shift in investor sentiment.
Technical indicators, particularly the Relative
Strength Index (RSI) reading of 64, suggest there is still room for the stock
to move higher without entering overbought territory.
From a charting perspective, Alphabet’s price remains
confined to a range between $175 and $181. Breaking decisively above
the upper boundary could open the door for a move toward the next resistance at
$186. Until that breakout occurs, the stock is effectively range-bound, though
the broader uptrend over the past three months shows a bullish
outlook.
Alphabet stock daily chart, Source: TradingView
Still, potential headwinds linger. Alphabet continues to
face regulatory scrutiny related to antitrust investigations, and some
investors remain cautious about the pace of commercial AI integration,
especially as rivals push forward with monetizable products.
Broader Market Holds Steady as Tariff Threats Loom
Elsewhere in the market, major indexes were mixed. The Dow
Jones Industrial Average and S&P 500 each added 0.2%, while the Nasdaq rose
0.4%. Investors appeared to shrug off renewed trade tensions after President
Trump threatened 30% tariffs on imports from Mexico and the European Union,
effective August 1 unless new trade agreements are reached.
Trump intensifies trade war with threat of 30% tariffs on EU, Mexico
— Reuters (@Reuters) July 12, 2025
Tech stocks led the modest advance, with Meta and Broadcom
each gaining around 1%, while chip stocks lagged. Micron fell 4%, and Qualcomm
dropped 2% as semiconductor sentiment weakened. Crypto-related stocks also
rallied, driven by Bitcoin’s continued surge above $123,000.
Can Alphabet Break Through?
Investors will be watching Alphabet closely this week for
signs of a decisive breakout. With RSI momentum on its side and growing
confidence in the firm’s AI capabilities, the stock could be positioned to
overcome its current ceiling.
However, resistance at $181 has proven difficult
to breach. Whether the recent hires at DeepMind can translate into lasting
market confidence may determine if Alphabet’s fourth day of gains turns into
something more durable.
