Alphabet Inc. (GOOG) has shown impressive resilience in 2024, gaining around 31% amid a challenging economic and regulatory environment.
As the company strengthens its position in artificial intelligence and digital advertising, it is also navigating competitive pressures and multiple antitrust challenges.
With technical indicators signaling further bullish momentum, GOOG appears on track for a potential rise to $235 by the end of Q1 2025.
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Technical indicators signal a bullish outlook
According to an analysis by TradingShot, GOOG has been following a steady upward trajectory within a “Channel Up” pattern, which began after hitting a low during the October 2022 market downturn.
This trend has created a clear structure for bullish momentum, with each upward leg achieving significant gains.
Recently, GOOG rebounded off the 50-week moving average (1W MA50), triggering a notable technical indicator, the “MACD Bullish Cross” on the weekly chart. This marks the first appearance of this bullish signal since March 2024.
Historically, each bullish leg within this Channel Up pattern has delivered approximately 60% gains from its correction low, peaking near the 2.382 Fibonacci extension.
Given the recent low in September 2024, a similar 60% increase positions GOOG with a target price of $235 by the end of Q1 2025, consistent with past patterns. This target appears attainable if GOOG can maintain its momentum above crucial support levels, especially near the 1W MA50.
More bullish projections
Further boosting this outlook, stock trading expert Jon Markman observed in an X post on November 12 that Google’s stock is showing strong bullish momentum, underscored by a recent breakout above key resistance levels and its position above the 50-day and 200-day moving averages.
This technical strength, coupled with supportive trading volume, provides a solid foundation for potential further gains, suggesting that GOOGL could maintain its upward trajectory in the near term.
At the close of the last trading session, GOOGL was valued at $183.32, ending the day up 0.7% and marking a 4% gain on the weekly chart.
Navigating regulatory setbacks and legal pressures
Alphabet has recently faced a series of antitrust lawsuits. On August 5, 2024, a federal judge ruled that Google held an illegal monopoly on online search and advertising in a case brought by the U.S. Department of Justice (DOJ).
The case, filed by the DOJ in 2020, raised concerns about Google’s market dominance in the internet search market and alleged that Google was engaging in illegal practices to suppress competing search engines, such as Bing and DuckDuckGo.
Specifically, Google established contracts with major companies, including Apple, to be the default search engine on their devices, pushing out competitors and preventing them from gaining market share.
The judge found that Google’s practices, which control 89.2% of the search market, violated antitrust laws by limiting competition and increasing ad prices, thereby breaching Section 2 of the Sherman Act.
More recently, in October 2024, a U.S. District Court judge mandated that Google must allow third-party app stores on Google Play, marking a significant shift in its Android ecosystem.
However, Google secured a temporary delay in enforcing these court-mandated changes, marking a minor legal victory as it navigates the restructuring of its Play Store operations.
Additionally, Google is facing a separate “AdTech” trial that began on September 9, where the DOJ alleges that Google’s dominance in digital advertising has harmed both advertisers and content creators.
Although Google has indicated plans to appeal any unfavorable rulings, the outcomes of these cases could significantly influence its stock performance.
AI-driven growth amid competitive challenges
Beyond technical indicators, Alphabet’s focus on artificial intelligence is reshaping its business. The company’s “AI Overviews,” introduced in mid-2024, is seen as a robust growth driver for Google’s advertising segment.
However, the inability to opt out of these AI-powered features has led to frustration among certain users.
Alphabet also faces fierce competition in the AI space. In response to rising competition from OpenAI’s ChatGPT web search, Google plans to launch its advanced AI tool, “Jarvis,” in December.
While regulatory challenges persist, Google’s advancements in artificial intelligence, along with sustained technical momentum, suggest a bullish outlook, making a target of $235 plausible as the company heads into the new year.
Featured image via Shutterstock
