Alphabet Inc. Shows Bullish Momentum with Potential for Gains Amid Technical Resistance

Technical Analysis

Alphabet Inc. (GOOG) closed June 6, 2025, at $174.92, up 3.01% (+$5.11). The recent price action shows strong bullish momentum, breaking above the 200-day moving average at $172.96 and well above the 50-day average of $162.01, signaling medium- and long-term upward trends. The Relative Strength Index (RSI) at 63 indicates moderate bullishness without overbought conditions. The MACD remains positive (4.40), confirming upward momentum. The stock trades near key resistance at $175.75, following a high intra-day price of $175.82. Average volume (26.24 million) exceeds current trading volume (10.85 million), suggesting room for volatility increase. Support lies at $161.06 with a stop-loss recommended near $169.25. The Average True Range (ATR) of 2.73 points to moderate volatility. Short-term price action may encounter resistance near $175.75 but a decisive break above could target the 52-week high of $208.70.

For June 9, 2025, price consolidation or a mild pullback is possible due to near-term resistance and overhead supply. However, the momentum suggests a higher likelihood of further gains in the coming days as market sentiment remains positive. Over the next week, the interplay between technical breakout above resistance and consolidation around the 200-day MA will dictate direction, with odds favoring a gradual rally toward consensus analyst targets near $195.50.

Fundamental Analysis

Alphabet’s market capitalization stands at approximately $2.14 trillion, underscoring its status as a mega-cap technology leader. Trailing twelve months (TTM) earnings per share (EPS) of $8.96 combined with an attractive price-to-earnings (PE) ratio of 19.80 signals relative valuation discipline amid strong growth profiles. The DCF intrinsic valuation at $250.46 substantially exceeds the current price, indicating a meaningful margin of safety and intrinsic undervaluation relative to market price. Analysts’ consensus target median of $195.50 further supports this assessment.

Alphabet benefits from sustained revenue growth drivers, including its dominant position in digital advertising and meaningful expansion in cloud computing and artificial intelligence (AI) technologies. Recent market commentary highlights Google Cloud's AI integration as a significant catalyst, potentially unlocking considerable derivative growth through generative AI applications. Despite challenges with Waymo’s robotaxi service suspension amid local unrest and a recently disclosed security bug, these issues are likely transient and isolated relative to Alphabet’s diversified business model.

Dividend yield stands at 0.46% (TTM basis), representing a minor income stream but emphasizing the company’s strategy to reinvest profits into innovation and expansion rather than income distribution. The upcoming earnings release (~July 22, 2025) and dividend date (June 16, 2025) may introduce short-term volatility.

Intrinsic Value and Long-Term Investment Potential

The intrinsic value derived from discounted cash flow analysis suggests the stock is undervalued around 30% relative to its last close price. Alphabet’s robust free cash flow generation and diverse revenue sources, coupled with continued leadership in AI and cloud services, position it for durable long-term growth. Its PE ratio remains reasonable compared to tech peers at similar maturity stages. Even with cyclical volatility and regulatory uncertainties, the company’s innovation pipeline and dominant market share support long-term capital appreciation potential.

Catalysts including AI adoption, expanding cloud footprint, and monetization of emerging technologies provide solid levers for sustainable earnings growth. Risks involve geopolitical tensions, regulatory scrutiny, and operational disruptions such as those seen with Waymo. However, Alphabet’s scale and flexible business model afford resilience.

Overall Evaluation

Alphabet exhibits a fundamentally sound and technically favorable profile at current levels. The stock trades below intrinsic value and analyst consensus targets, with momentum aligned to further gains. The combination of strong earnings, growth catalysts in AI/cloud, reasonable valuation, and institutional bullish consensus (66 buy versus 8 hold and 1 sell ratings) frames the stock as a positive trading and holding opportunity.

Given near-term technical resistance at $175.75, short-term traders might expect consolidation or a modest pullback on June 9, 2025, but the weekly outlook tilts bullish with a probable recovery and rally. Long-term holders benefit from intrinsic undervaluation and growth prospects, balanced by manageable risks.

Categorized as a Buy candidate reflecting attractive entry valuation, growth visibility, and favorable market dynamics.