Steve Grasso, CEO of Grasso Global, highlighted that traders are exiting Alphabet to secure remaining profits as the company's stock has stagnated for a year. He noted that the convergence of moving averages suggests that many investors have the same cost basis, leading to a collective decision to sell at current prices.
Following a poor earnings report, Alphabet's shares were expected to open 11% lower, with the company reporting worse-than-expected earnings, revenue, and capital expenditures, alongside a negative free cash flow of $9.07 billion. Grasso pointed out that this marks a troubling trend, as it is the second consecutive quarter of negative free cash flow, which the market tends to penalize.
He also remarked that Apple is now viewed as a safer investment compared to Google, reflecting a shift in investor sentiment