Alphabet stock flashed a “death cross” signal on Thursday as investors took in the firm’s latest earnings miss.
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Alphabet’s stock just flashed a feared “death cross” signal.
The technical signal flashes when an asset’s 50-day moving average drops below the 200-day average.
It typically precedes further downside in an asset’s price.
Investors beware: Alphabet stock entered “death cross” territory on Thursday.
Alphabet flashed the feared technical signal, which signal an asset’s 50-day moving average has slipped below the 200-day moving average. It often precedes further downside, which would be bad news for Alphabet and the tech trade broadly.
The Google parent, which was headed for its worst-ever single-day stock drop after its dismal third-quarter report, saw its 50-day moving average touch $340.28, dipping below the 200-day moving average of $340.93. Shares were down 12% around 11 a.m. ET.
Alphabet, the fourth-largest company in the world by market cap, is a critical player in the AI boom, but it’s been rattled recently as concerns grow about the trajectory of AI spending and whether the billions tech giants are pouring into the technology will be worth it. The company’s big miss on search revenue also showed that AI might be taking a bite out of one of the company’s biggest business segments.
Metric Q3 results Expected
Earnings per share $2.67 adjusted $3.02 adjusted
Revenue $127.58 billion (+25% year-over-year) $128.22 billion
Free cash flow -$9.07 billion -$2.70 billion
Its free cash flow also turned negative for the first time ever, stoking investor jitters about how it will fund the AI buildout. On the capex front, spending was lower in the quarter than Wall Street expected, but it signaled a huge year of spending ahead in 2027, projecting over $300 billion in spending for the year.
Alphabet shares are down 10% year-to-date.
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