Alphabet Stock Price 2025: Poised for Breakout Despite Q3 Earnings Miss
Explore why Alphabet Inc. (GOOGL) stock remains on the verge of a breakout near $1,300 despite missing Q3 earnings expectations, supported by strong revenue growth and strategic expansions.
Alphabet Inc. (GOOGL) shares experienced a slight dip of around 1% on Tuesday morning following the release of their third-quarter earnings report. Although the company missed earnings per share (EPS) projections by a significant margin, it surpassed revenue expectations with a 20% year-over-year increase, reaching $40.5 billion. This growth was primarily driven by a 19% rise in advertising revenue, achieved despite only a 1% increase in paid clicks. The stock’s pre-market decline was limited, retracing back to Friday’s closing price after a 2% rally on Monday.
Since hitting a five-month low in June, Alphabet stock has steadily climbed, breaking through a trading range that had persisted over the last two years. The recent rally approached resistance near the $1,300 mark on Monday, and the slight pullback this morning signals a minor reversal. Given the overall strength in the technology sector, investors should monitor price movements closely in the upcoming sessions, as a breakout to new highs remains a strong possibility.
Despite its mega-cap status, Alphabet is still sensitive to economic cycles, particularly because advertising revenue depends heavily on robust consumer spending. However, the company’s diversified portfolio, including recent moves like the offer to acquire Fitbit, Inc. (FIT) and investments in the Stadia gaming platform, positions it well to weather economic downturns. These expansions also contribute to ongoing government antitrust scrutiny.
Long-Term Price Trends of GOOGL (2004 – 2019)
Alphabet went public in August 2004 at a split-adjusted price of $50.01, briefly dipping below that to $49.47 before rapidly gaining momentum. By November 2004, the stock reached $100 and continued its upward trajectory, hitting $236 in early 2006 after a successful breakout. The peak of $373 in 2007 marked a high point before the 2008 financial crisis triggered a significant decline. Support was found in early 2009 at around $120, followed by a gradual recovery that stalled below previous highs until a breakout in 2012 led to new peaks in 2013.
From 2014 onwards, Alphabet’s stock enjoyed substantial gains, consolidating within a rising channel until reaching $1,198 in January 2018. Subsequent volatility saw a dip below $984 in late 2018 before the stock rebounded to challenge resistance near $1,300 in mid-2019. This breakout attempt remains ongoing, signaling strong long-term momentum.
Technical indicators such as the monthly stochastic oscillator have not entered oversold territory since 2011, underscoring the stock’s resilience. The current buying cycle has yet to hit overbought levels, suggesting ample room for further upside potentially targeting $1,500. Nonetheless, the steady uptrend since 2016 implies that a pullback to around $1,200 would not undermine the long-term bullish outlook.
Short-Term Technical Analysis (2017 – 2019)
The on-balance volume (OBV) indicator peaked alongside price in July 2018 but has since formed lower highs, indicating a bearish divergence risk during potential rallies. This suggests caution for traders anticipating a breakout, as volume support will be crucial to sustain upward momentum. Investors may prefer to wait for confirmation of volume buildup before committing to new positions.
Conclusion
Although Alphabet’s stock price declined slightly after its Q3 earnings miss, its proximity to key resistance around $1,300 suggests an imminent breakout could be on the horizon. Investors should closely watch upcoming sessions for decisive price action that may confirm a renewed bullish trend.
Disclosure: The author held no positions in Alphabet Inc. at the time of writing.
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