Alphabet (NASDAQ:GOOG) Trading Down 2.5% – Here’s What Happened

Shares of Alphabet Inc. (NASDAQ:GOOG) dropped 2.5% during trading on Tuesday . The company traded as low as $320.89 and last traded at $322.16. Approximately 26,947,000 shares were traded during mid-day trading, an increase of 26% from the average daily volume of 21,398,199 shares. The stock had previously closed at $330.34.

Key Stories Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Demand for Alphabet’s Gemini AI models is rising, with reports of a surge in sales that suggest improving model quality and clearer monetization of AI. Google Sees Surge in Sales of Gemini AI Models
• Positive Sentiment: Wall Street continues to raise targets — UBS assigned a $345 target today, and several firms (including RBC, BofA and Goldman) have lifted targets recently — supporting upside expectations. New Analyst Forecast: $GOOGL Given $345 Price Target
• Positive Sentiment: Usage metrics for Gemini are accelerating (API calls and adoption), which points to growing revenue opportunities in AI-powered ads, cloud services and APIs. Gemini Usage Explodes as API Calls More than Double in Five Months
• Neutral Sentiment: Google-backed Isomorphic Labs pushed its first clinical trials to late 2026 — a timeline shift for a biotech bet that has limited near-term impact on Alphabet’s core ad and cloud businesses. Isomorphic Labs delays clinical trial timeline
• Neutral Sentiment: Analysts argue that ChatGPT’s entry into advertising isn’t an immediate threat to Google/Meta’s ad franchises, which tempers competitive-risk concerns for now. Why Alphabet and Meta investors shouldn’t sweat ChatGPT’s ad launch — for now
• Negative Sentiment: Macro and sector pressure: a broader selloff in large-cap tech tied to geopolitical rhetoric and risk-off moves has hit the Magnificent Seven, weighing on Alphabet despite company-specific strengths. America’s Biggest Tech Stocks Lead Tuesday’s Selloff
• Negative Sentiment: High levels of insider selling and heavy trading activity reported recently may amplify investor caution about near-term upside. New Analyst Forecast: $GOOGL Given $345 Price Target (insider data included)
• Negative Sentiment: Coverage notes and market commentary point to the MAG-7 group diverging, which can reduce momentum flows into Alphabet and other mega-cap AI beneficiaries. The Magnificent Seven Drove Markets. Now They’re Pulling in Different Directions.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Bank of America raised their price target on shares of Alphabet from $280.00 to $335.00 and gave the stock a “buy” rating in a report on Thursday, October 30th. DA Davidson set a $300.00 target price on Alphabet in a research note on Tuesday, November 25th. Rosenblatt Securities set a $279.00 price target on Alphabet in a research report on Thursday, October 30th. Pivotal Research reissued a “buy” rating and issued a $400.00 price objective (up from $350.00) on shares of Alphabet in a report on Friday, December 5th. Finally, Wolfe Research lifted their target price on Alphabet from $290.00 to $350.00 and gave the stock an “outperform” rating in a report on Thursday, October 30th. Seven equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Alphabet currently has an average rating of “Buy” and a consensus target price of $321.97.

Alphabet Stock Down 2.5%

The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.75 and a current ratio of 1.75. The firm has a market cap of $3.89 trillion, a price-to-earnings ratio of 31.77, a PEG ratio of 1.82 and a beta of 1.09. The business’s 50 day moving average price is $312.84 and its 200 day moving average price is $257.16.

Alphabet (NASDAQ:GOOG) last announced its quarterly earnings results on Thursday, October 30th. The information services provider reported $2.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.29 by $0.58. The firm had revenue of $102.35 billion for the quarter, compared to the consensus estimate of $99.90 billion. Alphabet had a net margin of 32.23% and a return on equity of 35.00%. The firm’s quarterly revenue was up 15.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.12 earnings per share. On average, equities analysts forecast that Alphabet Inc. will post 8.89 EPS for the current year.

Alphabet Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, December 15th. Investors of record on Monday, December 8th were paid a $0.21 dividend. This represents a $0.84 annualized dividend and a dividend yield of 0.3%. The ex-dividend date was Monday, December 8th. Alphabet’s payout ratio is currently 8.28%.

Insider Buying and Selling

In other news, insider John Kent Walker sold 17,829 shares of the stock in a transaction that occurred on Tuesday, December 30th. The stock was sold at an average price of $314.89, for a total transaction of $5,614,173.81. Following the transaction, the insider owned 42,972 shares in the company, valued at $13,531,453.08. This trade represents a 29.32% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Sundar Pichai sold 32,500 shares of Alphabet stock in a transaction on Wednesday, December 3rd. The shares were sold at an average price of $319.50, for a total transaction of $10,383,750.00. Following the completion of the sale, the chief executive officer directly owned 2,272,119 shares in the company, valued at $725,942,020.50. This represents a 1.41% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 192,687 shares of company stock valued at $58,728,068. 12.99% of the stock is owned by company insiders.

Institutional Trading of Alphabet

Several institutional investors have recently modified their holdings of GOOG. Avaii Wealth Management LLC lifted its position in Alphabet by 2.3% during the fourth quarter. Avaii Wealth Management LLC now owns 1,437 shares of the information services provider’s stock worth $451,000 after buying an additional 32 shares in the last quarter. Accel Wealth Management grew its holdings in Alphabet by 0.8% in the 4th quarter. Accel Wealth Management now owns 4,068 shares of the information services provider’s stock valued at $1,276,000 after buying an additional 33 shares in the last quarter. Accelerate Investment Advisors LLC increased its stake in shares of Alphabet by 1.1% in the 4th quarter. Accelerate Investment Advisors LLC now owns 3,166 shares of the information services provider’s stock worth $993,000 after acquiring an additional 34 shares during the last quarter. Aspire Capital Advisors LLC raised its holdings in shares of Alphabet by 2.2% during the 4th quarter. Aspire Capital Advisors LLC now owns 1,609 shares of the information services provider’s stock worth $505,000 after acquiring an additional 35 shares during the period. Finally, Morse Asset Management Inc boosted its position in shares of Alphabet by 3.3% during the 3rd quarter. Morse Asset Management Inc now owns 1,093 shares of the information services provider’s stock valued at $266,000 after acquiring an additional 35 shares during the last quarter. Institutional investors and hedge funds own 27.26% of the company’s stock.

Alphabet Company Profile

Alphabet Inc (NASDAQ: GOOG) is a multinational technology holding company headquartered in Mountain View, California. Formed in 2015 through a corporate restructuring of Google, Alphabet serves as the parent to Google LLC and a portfolio of businesses collectively known as “Other Bets.” Google was originally founded in 1998 by Larry Page and Sergey Brin; Alphabet is led by CEO Sundar Pichai, who oversees Google and the broader company while the founders remain prominent shareholders and influential figures in the company’s history.

Alphabet’s core business centers on internet search and advertising, with Google Search and the company’s ad platforms (including Google Ads and AdSense) generating the majority of revenue by connecting advertisers with consumers worldwide.