Alphabet (GOOGL) stock was down 7.02% on Monday and there are a few reasons behind the shares’ fall. First off, traders will note that GOOGL stock has experienced strong gains in 2026. The stock was up 10.2% year-to-date, extending a 122.79% gain over the past 12 months. Google stock pulling back after these gains isn’t unexpected. However, it’s the size of the pullback that has some investors worried.
Another reason that Google stock could be down today is chatter on social media. Citrini Research caught the attention of investors with a post on X yesterday. The research firm said, “I believe hyperscalers will issue more than double current issuance expectations for 27-28. Beyond the potential for IG spreads to widen, I don’t really know what the implications will be.” This relates to funding and debt raised for AI, such as new chips and data centers. Investors appear worried that AI spending is outpacing potential profits, which has likely negatively affected shareholders’ morale today.
Finally, Alphabet stock was also likely hit by news of a talent loss. John Jumper, a senior research scientist at Google DeepMind, announced on Friday that he would leave the company. Even worse, the Nobel Prize winner said that he’s departing Alphabet to head to one of its competitors. This will see him join AI company Anthropic, which is the startup behind Claude AI. News of a top AI researcher leaving Alphabet to work for a rival is another blow to investors’ confidence.
Is Google Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Alphabet is Strong Buy, based on 28 Buy and five Hold ratings over the past three months. With that comes an average GOOGL stock price target of $427.38. This price target suggests a potential 23.01% upside for the shares.
