Alphabet (GOOGL) Shares Drop Over 7% in a Single Day
According to the Alphabet (GOOGL) stock chart, yesterdays main trading session opened around $163.70 but then saw a sharp decline, hitting an intraday low of approximately $148 per share. By the close, bulls managed to recover only a small portion of the losses. As a result, Alphabet (GOOGL) shares fell by more than 7% during the session marking the worst performance among the S&P 500 constituents (US SPX 500 mini on FXOpen).
Why Did GOOGL Shares Fall?
The drop followed remarks by Eddy Cue, Apples Senior Vice President of Internet Software and Services, who:
noted a decline in search traffic on Safari;
revealed plans to expand Safaris search capabilities using artificial intelligence.
These developments heightened concerns over Googles dominance in search and its advertising revenue. According to media reports, analysts are warning of rising competition from AI-powered search platforms such as OpenAI, Grok, and Perplexity.
Technical Analysis of Alphabet (GOOGL) Shares
In our 23 April analysis, we identified a descending price channel and emphasised the psychological significance of the $150 level, which had served as a key support in 2024.
Since then, bulls showed confidence by pushing the price above the red channel. In addition, the chart has begun to outline a potential ascending trend channel (marked in blue).
However, yesterdays statement from competitors shifts the outlook. The current GOOGL stock price is positioned at the lower boundary of the blue channel which could act as support, reinforced by the psychological $150 level.
On the other hand, a bearish breakout below this area may revive the downtrend that began in February, potentially paving the way for a test of this years lows.
Read more: https://fxopen.com/blog/en/oa-alphabet-googl-shares-drop-over-7-in-a-single-day/
Text source: Forex Trading Blog
