GOOGL: Alphabet Stock Bounces Off Double Bottom After 15% Slide. Time to Buy?

After a few weeks of heavy beating, Alphabet is testing a support which three months ago sparked heavy buying. Can it happen again?

🧱 Double Bottom or Dead Bounce?

• Alphabet stock GOOGL has slid roughly 15% from its $350 record high to a three-month low near $297. On Tuesday, the shares bounced. That $297 zone held back in November and sparked a sharp rally. Could it be… a double bottom?
• A double bottom is a technical pattern where price tests the same support twice and rebounds. It signals sellers may be exhausted and buyers hungry. Confirmation, however, requires follow-through buying and a break above interim resistance.
• Momentum gauges are flashing early optimism. The RSI, which tracks overbought and oversold conditions, is lifting from depressed levels. The MACD, a trend indicator, is curling higher. Signals are constructive, though hardly a victory lap.

💰 The $185B Elephant in the Room

• The bounce arrives amid growing anxiety over AI spending. Alphabet outlined 2026 capital expenditures between $175 billion and $185 billion, well above forecasts. That is a massive commitment to data centers, chips and infrastructure.
• Capital expenditures, or capex, represent long-term investment in assets. While they can drive future growth, they also compress free cash flow today. Investors are recalibrating how quickly AI spending converts into visible earnings power.
• Across Alphabet, Microsoft, Meta and Amazon, combined capex could approach $700 billion this year. The AI arms race is accelerating. The market is simply asking whether revenue growth can keep pace with the bill.

📊 Time to Buy the Dip?

• From a valuation lens, Alphabet now trades well below its peak despite revenue growth in the mid-teens and solid margins. Bulls argue the reset prices in most of the capex shock. Bears counter that expectations may still be too rosy.
• Technically, reclaiming the $320 to $330 region would strengthen the bullish case. Failing to hold $297 would invalidate the double bottom narrative and reopen the door to deeper retracement levels.
• The setup is clear: support is defined, risk is measurable, and sentiment is cautious. For traders, that combination can be attractive. For investors, the question remains simple. How patient are you with AI returns?