Alphabet NASDAQ:GOOG shares closed below their 200-day moving average for the first time in more than a year after investors weighed the company's latest quarterly results and increased artificial intelligence spending plans.
Alphabet ended Thursday at $318.34, finishing beneath the closely watched long-term technical indicator after its quarterly earnings prompted a broad reassessment by investors. Although the company reported solid financial results, higher capital expenditure tied to AI infrastructure drew market attention.
The move marked Alphabet's first close below its 200-day moving average in more than a year, based on Barchart data. The indicator is widely monitored by market participants as a gauge of long-term price momentum and had served as a support level for much of the past 12 months.
Technical analysts generally view a sustained break below the 200-day moving average as a potential sign of weakening long-term momentum. However, many prefer to see the stock remain below that level for several trading sessions before considering it confirmation of a broader trend change.