Alphabet Walks A Tightrope Into Q1 Earnings: Bearish Charts, Bullish Expectations (CORRECTED)

Editor's Note: This article has been updated to reflect that Alphabet will report first-quarter earnings on Thursday.

Alphabet Inc GOOGL GOOG will be reporting its first-quarter earnings on Thursday. Wall Street expects $2.02 in EPS and $88.87 billion in revenues as the company reports after market hours.

The stock is down 2.38% over the past year and a steeper 17.99% year-to-date.

Let's look at what the charts indicate for Alphabet stock and how the stock currently maps against Wall Street estimates.

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Alphabet Stock In A Tug-Of-War Ahead Of Q1 Earnings

Chart created using Benzinga Pro

Technically, Alphabet is caught in a tug-of-war between short-term bullish signals and a longer-term bearish downtrend. The stock, at $155.30, is trading just above its eight-day and 20-day simple moving averages (SMAs) of $153.71 and $153.57, respectively—both bullish indicators suggesting that buyers are stepping in at the margins ahead of earnings.

But the deeper trend tells a more cautious story. Alphabet remains firmly below its 50-day and 200-day SMAs of $164.54 and $172.41, respectively, which implies that broader sentiment hasn't turned around yet.

In addition, the MACD (Moving Average Convergence Divergence) indicator is sitting at a negative 3.25, reinforcing a bearish outlook for now. The RSI (Relative Strength Index) of 47.63 puts it in a neutral zone – not oversold, but not hot either.

For investors, this sets up a high-stakes earnings event. A solid beat and confident commentary on the $75 billion AI infrastructure play could catalyze a reversal in longer-term trends. However, failing to address legal overhangs – especially the risk of restructuring its advertising empire after an antitrust ruling – might deepen the selloff.

Alphabet Analysts See 24% Upside

Ratings & Consensus Estimates: The consensus analyst rating for Alphabet stock is currently a Buy, with a price target of $197.83. The three most recent analyst updates, from Stifel, RBC Capital, and Morgan Stanley, give an average price target of $192.33, suggesting an implied 23.85% upside from current levels.

Price Action: Alphabet stock was up 2% to $160.96 at the time of publication Thursday.

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