Alphabet Stock Shows Bullish Momentum Amid Regulatory Scrutiny and Strong Fundamentals

Technical Analysis

Alphabet Inc. (GOOGL) closed at $166.77 on June 24, 2025, up 0.96% from the prior session, with intraday lows/highs of $166.13/$168.22. The stock trades just above its 50-day moving average ($164.45) but below the 200-day moving average ($171.84), indicating a near-term bullish momentum within a longer-term consolidation phase. The Relative Strength Index (RSI) sits at a neutral 51, suggesting no immediate overbought or oversold conditions. The MACD remains positive at 3.64, supporting recent buying strength. Key support holds near $166.64, while resistance stands at $168.56. Average volume aligns closely with today’s volume (~40 million shares), reflecting stable liquidity.

For the next trading day (June 25), technical momentum favors a mild continuation upward, possibly testing resistance near $168.56. Over the coming week, the stock may experience sideways to modestly bullish movement, constrained below the 200-day moving average, unless positive catalysts drive higher volume and a breakout beyond $171.

Fundamental Analysis

GOOGL exhibits strong fundamentals with a market capitalization of approximately $2.03 trillion and a trailing twelve-month EPS of $8.82, resulting in a P/E ratio of 18.91. This valuation sits below the broader technology sector averages, implying relative undervaluation. The discounted cash flow (DCF) intrinsic value stands significantly higher at $263.03, suggesting a substantial margin of safety and indicating long-term upside potential.

Consensus price targets range from $160 to $202, with a median at $190 and consensus at $186.40, underscoring moderate analyst optimism. The recent earnings announcement is scheduled for July 22, potentially a key catalyst for stock movement. Institutional sentiment leans heavily bullish: out of 78 analyst ratings, 63 favor Buy or Strong Buy, 14 hold, and only one Sell.

Recent news highlights increasing regulatory scrutiny from UK watchdogs, with possible mandates requiring Google to open its search platform to rival engines and impose restrictions on AI search features. While regulatory risks create near-term uncertainty, they reflect geopolitical challenges typical for large tech companies. Additionally, Alphabet’s autonomous vehicle unit Waymo’s expansion into Atlanta through a robotaxi service signals continued innovation and diversification, which could drive long-term growth.

Apple’s AI enhancements and competition in search underscore an intensifying competitive landscape, but Alphabet’s entrenched market position and broad AI investments maintain its sector leadership.

Intrinsic Value and Long-Term Prospects

The DCF valuation ($263.03) exceeds the current market price by over 57%, suggesting the stock is undervalued relative to its expected future cash flows. Alphabet’s diversified revenue streams from advertising, cloud, AI, and autonomous technology provide strong foundations for sustained earnings growth. Regulatory headwinds pose risks but are unlikely to significantly impair the company’s dominant market positions in the medium to long term.

Given its strong free cash flow generation, global moat, and innovation pipeline, Alphabet appears well-positioned for wealth creation over the next several years, especially as AI and cloud computing penetration deepen.

Overall Evaluation

Alphabet shares currently present a compelling entry point given near-term consolidation and significant intrinsic value upside. The technicals show stable support and moderate bullish momentum. Institutional and analyst sentiment is primarily positive, despite regulatory uncertainties in Europe that require monitoring. The valuation below intrinsic DCF estimates and favorable growth outlook support a constructive stance on the stock with a preference to accumulate on volatility.

Categorizing Alphabet as a Hold/Buy candidate reflects the balance of solid fundamentals and innovation-driven growth against near-term geopolitical and regulatory risks. The near-term trading range should be watched closely for breakouts above the 200-day moving average to confirm trend resumption.