Alphabet Inc., the parent company of Google, started June under pressure. With a U.S. court currently reviewing an antitrust case that could change the future of online search and AI, investors are feeling nervous. On Monday, June 2, Alphabet’s stock opened at $168.00, a 2.3% drop from last week’s closing price. This fall isn’t just a small market dip; it shows real worry about how the court’s decision might affect the company’s hold on search and its future in AI.

Why Alphabet Stock Is Under Fire

The key factor shaking confidence in Alphabet stock is the looming court ruling in the U.S. antitrust trial. The central allegation? Google has leveraged its dominance in traditional search to gain an unfair edge in AI-powered search, a move regulators believe may hinder competition in emerging technologies.

During Monday’s premarket session, the stock hovered around $168.00, near the 100-day Exponential Moving Average (EMA) of $167.48. This level served as a critical cushion just last Friday when Alphabet shares tumbled but managed a powerful rebound to $172.10, a bullish recovery that formed a classic “Doji” candlestick pattern.

Last Week’s Rollercoaster Ride

May ended on a volatile note for Alphabet. On Friday, the stock dipped from $171.27 to a six-day low of $167.48 before roaring back with a 2.76% gain, closing at $171.80. The bullish Doji candlestick, typically a sign of potential reversal, raised investor hopes heading into June. But the optimism was short-lived. Monday’s early drop paints a more cautious picture.

“The remarks made on the Indian side underscored the utter futility of jingoism and coercion,” this quote from an unrelated geopolitical event mirrors the broader sentiment in financial markets: aggression and dominance in any field, including tech, come under scrutiny.

Technical Breakdown

Technically, Alphabet’s stock is now trading below the 0.618 Fibonacci retracement level, derived from its recent bullish swing. If the price breaks further, support near $166.00 becomes critical; this level aligns with the 20-day EMA, forming a zone where buyers may step in.

Alphabet’s 20 EMA has crossed above the 50 EMA on the daily chart, a bullish signal suggesting the medium-term uptrend may still be intact. This crossover indicates that despite short-term jitters, the longer-term picture isn’t necessarily broken yet.

How This Trial Could Reshape Google’s Future

At the heart of this volatility is the antitrust case that could change how Google does business. The focus is whether Google unfairly used its dominance to push its AI-powered search tools ahead of competitors. Regulators are weighing potential remedies, including forced changes to Google’s operating model.

This isn’t just about fines or restrictions. It could impact Google’s future dominance in AI, reshape digital advertising, and influence the tech strategies of other AI-first companies like Microsoft, Amazon and Meta. Investors are jittery because the outcome is unpredictable and any ruling that limits Google’s flexibility could ripple across Alphabet’s revenue streams.

How the Trial Could Impact Alphabet’s Stock

Alphabet stock surged 8.5% in May, driven largely by optimism around AI integration and shifting Federal Reserve expectations. But the sudden dip in June shows how fragile bullish momentum can be in the face of regulatory uncertainty. If the price holds above $166.00 and stabilizes, buyers might regain confidence, potentially retesting resistance at $172.10 and beyond. However, if the bearish pressure intensifies and the price falls below $166.00, it may trigger deeper corrections toward lower Fibonacci levels. In the short term, the stock will likely move in sync with headlines from the courtroom. Traders and long-term investors alike are keeping a close watch.

The Road Ahead for Alphabet Stock

The next few weeks will be crucial. Here’s what to monitor:

  • The court’s final ruling on the antitrust case
  • Alphabet’s technical reaction to the $166.00 support zone
  • Shifts in market sentiment based on Fed interest rate talk
  • Updates from rival AI players and tech industry regulators

If Alphabet navigates the court proceedings successfully, the company could emerge stronger, with a more transparent AI model that satisfies both consumers and regulators. However, if the court imposes structural remedies, Alphabet’s product strategies may face delays or forced modifications.

Insight & Outlook

Alphabet’s underlying business remains solid. Its cloud division is growing, YouTube continues to lead digital content, and Google Search still dominates. However, the AI battlefield is different and regulators aren’t taking dominance lightly. Our opinion? If you’re a long-term investor, these dips may offer opportunities, but only after regulatory clarity emerges. For short-term traders, stay nimble. Watch for a confirmed hold above $166.00 or a breakout above $172.10 for trend confirmation. For now, the market await,s and so does the tech world.