Alphabet (GOOGL) Earnings Preview: What to Watch as AI Investment and Market Uncertainty Loom

Alphabet Inc. (NASDAQ: GOOGL) is set to report its quarterly earnings tomorrow, becoming the second of the “Magnificent Seven” to release results this season, following Tesla’s announcement yesterday. Despite Tesla falling short of analyst expectations—with slowing growth and delayed guidance—its stock rose in after-hours trading. This uptick came on the back of comments from Elon Musk, who indicated he would be stepping back from his involvement with Dogecoin (DOGE) starting next month.

In early pre-market trading today, Big Tech stocks, including Alphabet, are trending higher. This comes after former President Donald Trump stated that he does not plan to remove Jerome Powell from his position as Chair of the Federal Reserve, boosting investor confidence across broader markets.

However, all eyes remain on Alphabet as investors anticipate key updates on several fronts:

• AI Investment Strategy: How much is Alphabet investing in artificial intelligence, and what returns can shareholders expect?

• Tariff-Driven Demand Shifts: With potential new tariffs looming, how will demand across regions be impacted?

• Potential Breakup Rumours: Will management provide further insight into the speculated company split?

• Forward Guidance: What does the company foresee for the rest of the year?

Currently, Alphabet shares are trading around $154.79 in the pre-market, up over 2% so far today.

Technical Analysis: Alphabet Share Price Eyes Resistance Near $165

From a technical perspective, Alphabet's stock recently rebounded from the 200-day moving average (200MA), following a sharp March-April sell-off. This bounce suggests some short-term stability, though broader market uncertainty still casts a shadow over the long-term outlook.

This current setup echoes patterns seen in 2022, where the stock, after a significant decline, found support in May and moved higher, nearing the 50-day moving average (50MA). At present, the 50MA appears to be curling downward—potentially indicating a similar trend is unfolding.

If momentum holds, Alphabet’s share price could climb back above $160, with a potential extension towards $165. However, the 50MA is expected to act as a key resistance level. On the downside, support lies at the 200MA, now around $136.84. A break below the $140 level could trigger further selling pressure.

Momentum Indicators: MACD Suggests Caution

The MACD (Moving Average Convergence Divergence) indicator shows continued downward momentum. Compared with the 2022 trend, there remains room for further decline, which may place short-to-medium-term pressure on the stock.

Bottom Line

As Alphabet gears up for its earnings release, investors should watch closely for commentary on AI spending, global demand amid trade uncertainty, and any strategic restructuring. Technically, a short-term bounce is in play, but macro and technical headwinds remain. Whether GOOGL stock continues its climb or retreats from resistance will likely hinge on tomorrow’s results.