GOOGL Stock Falls 11.2% in June as Analysts See 28% Upside

Alphabet shares declined 11.2% in June and are heading for their worst monthly performance since February 2025, as investors sold off Big Tech stocks in favor of semiconductors. The selloff was driven by concerns over high capital expenditure by Alphabet and its Big Tech peers, including the company's $5 billion increase to its annual capex forecast announced in April and an $80 billion equity raise announced earlier this month. The decline outpaced the broader technology sector, with the tech-heavy Invesco QQQ Trust Series 1 declining 4.2% in June, while Microsoft posted the worst Magnificent Seven performance with a 17% drop.

Alphabet shares rose 1% in the premarket session on Monday. GOOGL stock sits roughly in the middle of the Magnificent Seven in terms of June performance. Alphabet was the top-performing Mag7 stock last year, powered by its Gemini 3 AI model, which launched in November.

Alphabet Raises Capital Expenditure Forecast and Announces Equity Raise

Alphabet raised its annual capital spending forecast by $5 billion to between $180 billion and $190 billion in April, mainly meant for AI development, cloud capacity expansion and chip development. Earlier this month, the company announced it would raise $80 billion by issuing new shares. It also said that Berkshire Hathaway had committed to buy a $10 billion lot.

Analysts Rate GOOGL with 28% Upside Projection

Currently, 57 out of 64 analysts rate GOOGL stock 'Buy' or higher, and seven rate it 'Hold,' per Koyfin. Their average price target of $337.37 implies an upside of 28% from the stock's closing price on Friday. Analysts forecast higher upside on Google's cloud rivals Amazon and Microsoft, as well as for Nvidia and Meta Platforms.

In terms of forward price to earnings, GOOGL trades at 26.9, compared to Microsoft at 20.1, Meta at 16.8, and Nvidia at 19.4. Amazon trades at 27.9, Apple at 31.2, and Tesla at 176.

Retail Sentiment Shifts to Neutral on Stocktwits

On Stocktwits, the retail sentiment for GOOGL shifted to 'neutral' from 'bullish' on Monday morning. Over the last 90 days, the message volume for GOOGL declined 64%, signaling waning interest among retail traders.

"$GOOGL I want to buy but i can't at these high premium levels. It was 19 P/E just a year ago, and now I have to pay 26 P/E. It just doesn't make sense," a trader wrote. "If it goes below $300 it may be worth it to start buying and averaging down. The company is too big, and growth is very slow. One of the best companies in the world, just not worth the current value and growth," they said.

FAQ

Why did GOOGL stock decline in June?

GOOGL stock declined 11.2% in June as investors sold off Big Tech stocks in favor of semiconductors, driven by concerns over high capital expenditure by Alphabet and its Big Tech peers.

What is the analyst price target for GOOGL stock?

Analysts' average price target for GOOGL is $337.37, which implies an upside of 28% from the stock's closing price on Friday. Currently, 57 out of 64 analysts rate GOOGL stock 'Buy' or higher.