Alphabet stock (NASDAQ: GOOG) declined nearly 9% in Q1 2026 amid AI spending concerns before surging in early Q2. Financial analyst Vinod Dsouza forecasts the stock could reach $340 by May 2026, citing technical indicators and a divergence in market sentiment between retail and institutional investors.
Google‘s parent company Alphabet saw its stock slide nearly 9% in the first quarter of 2026. A steep decline at the end of March was driven by broader market concerns over AI spending affecting all tech stocks.
The stock began the second quarter strongly, rising from $271 to $294.90 within three days. This surge occurred on a Wednesday despite former President Trump hinting at further strikes against Iran over the next few weeks.
Analyst Vinod Dsouza predicts Alphabet stock could reach $340 by May 2026. He based this on an analysis of the 200-day Simple Moving Average and a recent RSI ‘springboard’ effect, suggesting a bottom had formed.
The stock remains below its 50-day and 100-day SMAs, both near $310. Dsouza stated that “as long as Google’s Alphabet stock maintains its weekly close above this long-term average, the current pullback should be viewed as a healthy correction.”
He noted a clear difference in market participant behavior. Retail investors were described as chasing geopolitical headlines and focusing on extreme fear from the Middle East conflict.
In contrast, Dsouza observed that institutional clients were profiting from this fear by taking larger positions in the stock. He pointed out that institutions focused on the part of Trump’s speech suggesting the conflict “will end in three weeks.”
