Google parent Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) is emerging as the lone bright spot among mega-cap technology stocks, defying a broader, messy patch for its Magnificent Seven peers.
According to Strategas chief chartist Todd Sohn, the search giant boasts the “best chart” in big tech right now, carving out a “different story” as its closest sector rivals start to look “ugly” on a technical basis.
The Big Tech Divergence
Appearing on The Real Eisman Playbook podcast with famed investor Steve Eisman, Sohn highlighted a striking technical divergence ripping through the technology sector. While the broader market cap-weighted indices continue to float near highs, under the hood, foundational tech icons are showing severe signs of exhaustion.
“If you just compared on one screen Google, Alphabet… Meta, Microsoft, you’d have Google would be the contrast there,” Sohn observed, noting that the company’s chart looks exceptionally strong.
In sharp contrast, heavyweights like Meta Platforms Inc. (NASDAQ:META) and Microsoft Corp. (NASDAQ:MSFT) are flashing structural warning signs, with their critical 200-day moving averages beginning to flatten out and slope downward.
Sohn labeled Microsoft’s recent price action a “red flag,” describing it as “ugly compared to again a market that’s making a new high.”
The AI Power Connection
Alphabet’s technical resilience isn’t happening in a vacuum. Sohn compared Google’s chart setup to industrial breakout stars like GE Vernova Inc. (NYSE:GEV), which have skyrocketed due to the massive capital expenditures required to build out artificial intelligence infrastructure.
Eisman chimed in on the connection, noting that Alphabet and GE Vernova are likely “in cahoots together, powering… the AI of Google.”
While Sohn warned that Alphabet did get “very extended” and “super overbought” recently—likening it to a runner who is “exhausted” after running a four-minute mile—he remains highly constructive on the name.
For investors looking for an entry point, Sohn suggests that any near-term profit-taking will ultimately present an attractive opportunity, concluding that the stock “will likely be buyable.”
GOOG’s Technical Chart
As of the June 30 close at $353.33 apiece, GOOG’s technical profile presents a mixed, transitional picture as the stock cools off from its aggressive May highs. Here is a breakdown of the current technical indicators, according to Benzinga Pro.
- Moving Averages (SMAs): The stock is trading below its shorter-term moving averages, facing immediate resistance at the 20-day SMA ($356.22) and the 50-day SMA ($367.63). However, the longer-term structural trend remains intact, with the price comfortably supported above both the 100-day SMA ($337.39) and the 200-day SMA ($313.87).
- RSI (Relative Strength Index): GOOG’s 14-day RSI sits at 46.84. This firmly neutral reading shows the stock has completely worked off the “super overbought” exhaustion seen earlier in the spring, leaving plenty of runway for buyers if a new catalyst emerges.
- MACD (Moving Average Convergence Divergence): Momentum remains slightly bearish in the near term. The MACD line (-5.37) is trending below the signal line (-4.72) and rests in negative territory. However, the MACD histogram is starting to flatten out at -0.66, suggesting that the recent downward selling pressure may be stabilizing.
How Has GOOG Performed In 2026?
GOOG shares have advanced by 12.60% year-to-date, down 6.14% over the last month, and up 99.14% over the year. The stock closed 0.58% higher at $353.33 apiece on Tuesday, and it was 0.37% lower in premarket on Wednesday.
Benzinga’s Edge Stock Rankings indicate that GOOG maintains a weak price trend in the short term but a strong trend in the long and medium terms, with a poor value score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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