Alphabet shares rose 1.8% to $162 after the Google parent company reported quarterly results that exceeded Wall Street expectations. The strong earnings report, driven by AI-fueled search advertising growth, led several analysts to raise their price targets for the stock.
The tech giant’s plans to spend $75 billion on capital expenditures this year, mainly on building out its AI infrastructure, were also a positive factor. However, investors remain cautious due to concerns about whether the company’s significant investment in AI will pay off.
Alphabet shares have trended lower within a descending channel throughout most of the year but staged a breakout above the upper trendline in Thursday’s trading session. The relative strength index (RSI) is neutral, providing room for further upside.
Key overhead areas to monitor include $168 and $196, which may provide resistance near trendlines linking multiple peaks and troughs on the chart. A critical support level worth watching is around $155, where buying interest could attract investors during a potential pullback.
The company’s AI integration into Google search has driven user engagement, according to Alphabet. The tech giant reiterated its plans to invest heavily in AI infrastructure, which may impact future earnings. Despite this, the stock’s price surged after strong earnings report, indicating investors are optimistic about the company’s prospects.
Source: https://finance.yahoo.com/news/watch-alphabet-price-levels-stock-193831461.html