Alphabet NASDAQ:GOOGL slipped below its 200-day moving average for the first time in more than a year after an earnings-driven selloff knocked nearly 7% off the stock.
Shares closed Thursday at $318.34, down 6.9%, as investors looked past solid quarterly results and focused instead on the rising cost of Alphabet's artificial intelligence buildout.
Alphabet is the parent company of Google, YouTube and Google Cloud. Its advertising and cloud businesses remain highly profitable, but the company is spending heavily on data centers, chips and other infrastructure needed to support AI products.
The 200-day moving average is widely watched as a gauge of long-term momentum. A single close below it does not confirm a breakdown, but staying under the level for several sessions could make traders more cautious.