High Selling Pressure for Google Stock As Investors Take Advantage of Positive Antitrust News
Google's stock rose quickly this week but could decline thanks in part to strong pressure among investors to seek while the stock peaks.
Quick overview
- Alphabet's stock surged over 9% on Wednesday due to positive news from the antitrust lawsuit, leading to significant selling pressure.
- Investors sold $154 million in Google shares, nearly three times the usual selling activity, raising concerns about a potential decline.
- While the stock is at its 2025 peak, analysts suggest it may not rise further in the coming months, especially with September's historical market struggles.
- Factors like potential Fed interest rate cuts and further developments in the antitrust case could influence future stock performance.
Alphabet (GOOGL), the parent company of Google, saw their stock shoot up on Wednesday amid excellent news from the ongoing antitrust lawsuit, leading to strong selling pressure.
Investors are selling their shares of Google stock this week after its value skyrocketed more than 9% in a single day. That intense selling pressure could lead the stock to decline, as $154 million in stock shares were sold on Wednesday. That is nearly three times as much selling activity as we typically see for this stock.
In premarket trading for Thursday, the Alphabet stock was retreating just 0.67%, but that movement could intensify as the market fully opens and the day progresses. This stock is now at its 2025 peak, and investors may be worried that it will not go any higher than it is right now.
Is Google Stock Likely to Lose Value through the End of the Year?
While Alphabet stock could perform even better next year, especially if the antitrust suit finishes then, there is the distinct possibility that the company’s stock may have hit its 2025 high already and may not go any higher for the next few months.
However, there are a few factors that could help propel the stock further upward in the coming months. We could see some Fed interest rate cuts that help shift the entire stock market upward. We could also see further developments from the antitrust lawsuit, although investors should be aware that any further developments are not likely to be as significant as what was decided this week already.
September tends to be a month where the stock market experiences significant struggles, and that may be the case again this year. Although all three major stock indices rise to record highs in August, that may not happen again in September as the market withdraws.
The stock has only declined less than 1% since its Wednesday surge, so there is still time for investors who hold GOOGL stock to sell quickly. We may see further decline throughout the day and then a steeper drop through September too. The thinking among analysts right now is that Google might have moved too far too fast and could be in for a retreat in the coming days and weeks.
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