Why Alphabet Stock Fell Today

Source The Motley Fool

Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) stock ended Thursday's trading session in the red. The company's share price fell 1.4% in a day of trading that saw the S&P 500 (SNPINDEX: ^GSPC) rise 0.1% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) fall 0.1%.

Alphabet stock swung from being up as much as 1% to down as much as 3% as investors reacted to differing catalysts. While a pair of new analyst price targets suggested there was still significant upside for the stock, shares moved lower following news that the company had received an unfavorable antitrust ruling.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Alphabet stock initially rose on new price targets

Before the market opened this morning, Morgan Stanley published new coverage that reiterated its overweight rating on Alphabet. While the firm lowered its one-year target on the stock from $210 per share to $185 per share, the new target still suggested roughly 20% upside compared to its price when the market opened today.

Truist also published new coverage on the stock today, maintaining a buy rating but lowering its one-year target from $220 per share to $200 per share. At market open, Truist's new target implied 30% potential upside.

The stock fell after a monopoly ruling on Alphabet

U.S. District Judge Leonie Brinkema ruled today that Alphabet was responsible for intentionally building and sustaining a monopoly in the digital ad-network space. Alphabet said that it would be appealing the ruling, and that its success in the digital ads market was the result of its tools being "simple, affordable, and effective."

Today's court filing raises the chances that Alphabet could spin off its Google advertising network, but the nature of the appeals process suggests that the move would likely take years to play out.

Should you invest $1,000 in Alphabet right now?

Before you buy stock in Alphabet, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $518,599!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $640,429!*

Now, it’s worth noting Stock Advisor’s total average return is 791% — a market-crushing outperformance compared to 152% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 14, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Truist Financial. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Finding The Best Japan Stocks to Buy? These are Top Japanese Companies to Watch Discover the best Japanese stocks to buy, including AI semiconductor leaders, Buffett-backed trading houses, and undervalued Japan stocks benefiting from corporate reforms and yen trends.
Author  Mitrade
May 29, Fri
Discover the best Japanese stocks to buy, including AI semiconductor leaders, Buffett-backed trading houses, and undervalued Japan stocks benefiting from corporate reforms and yen trends.
placeholder
Bitcoin Price Forecast: BTC risks losing $70,000 as AI and chip rally steal the spotlightBitcoin (BTC) edges below $73,000 at press time on Monday, extending its decline under the prevailing downside pressure from three consecutive weeks of losses.
Author  FXStreet
Jun 01, Mon
Bitcoin (BTC) edges below $73,000 at press time on Monday, extending its decline under the prevailing downside pressure from three consecutive weeks of losses.
placeholder
WTI rises to near $93.00 as Iran launches missiles toward Kuwait, BahrainWest Texas Intermediate (WTI) gains ground for the third successive day, trading around $92.90 per barrel during the Asian hours on Wednesday.
Author  FXStreet
Yesterday 01: 24
West Texas Intermediate (WTI) gains ground for the third successive day, trading around $92.90 per barrel during the Asian hours on Wednesday.
placeholder
Forex Today: US Dollar stays resilient ahead of key US dataHere is what you need to know on Wednesday, June 3:
Author  FXStreet
19 hours ago
Here is what you need to know on Wednesday, June 3:
placeholder
Bitcoin drops below $65K amid reinforced bear market signalsBitcoin (BTC) dipped further below $65,000 on Wednesday, with onchain data from Glassnode signaling a market firmly in a bear phase. The decline has pushed prices back into a key valuation range between the Realized Price and the True Market Mean.
Author  FXStreet
4 hours ago
Bitcoin (BTC) dipped further below $65,000 on Wednesday, with onchain data from Glassnode signaling a market firmly in a bear phase. The decline has pushed prices back into a key valuation range between the Realized Price and the True Market Mean.
goTop
quote