Alphabet Nears Critical Support as Jobs Report and EU Cloud Ruling Collide

Alphabet shares near 100-day moving average after 7% weekly drop; EU targets AWS and Azure under DMA while Google Cloud avoids new rules, but Q1 cloud revenue surged 63%.

Alphabet shares ended last week at €296.70, nursing a 7.15% weekly decline that has left the stock testing a key technical threshold. With no company-specific catalysts on the immediate horizon, the macroeconomic calendar takes centre stage — and the US jobs report for June, due Thursday due to the Independence Day holiday, could determine whether the 100-day moving average holds as support or gives way.

The 100-day line at €291.33 now acts as the first line of defence. A break below that level would shift attention to the 200-day moving average near €270, a zone that has not been tested since the autumn. The recent sell-off has already pushed the stock 7% beneath the 50-day average of €318.46, while the relative strength index sits at 34.3 — just above oversold territory but without a clear reversal signal.

Cloud Rivals Face EU Heat While Google Watches From the Sidelines

The regulatory spotlight has swung toward Amazon Web Services and Microsoft Azure, with the European Commission preliminarily designating both as gatekeepers under the Digital Markets Act. The move would mandate interoperability and data portability for those platforms. Notably, Google Cloud is absent from the list, despite Microsoft’s argument that regulators underestimate the search giant’s growing cloud presence.

For Alphabet investors, this is no free pass — the company still faces antitrust scrutiny in search, ad tech, and AI services. But the current EU push directly targets the two largest cloud competitors, leaving Google Cloud’s market share gains unencumbered by new compliance obligations at this stage. With more than half of all EU businesses using cloud services, the competitive structure of the sector has become a live issue.

Cloud Growth Remains the Investment Narrative Backbone

Alphabet’s first-quarter results underscore why the cloud business matters so much. Cloud revenue surged 63% year-on-year, while the cloud backlog more than doubled sequentially to over $460 billion. Three-quarters of cloud customers now use Google’s AI products. The operating margin for the group climbed above 36% on total revenue of nearly $110 billion, up 22%.

That strong operational performance provides a fundamental anchor, even as the stock experiences short-term turbulence. The central tension remains whether the massive AI infrastructure spending can be supported by the core search and YouTube advertising engine. Meanwhile, reports of further senior AI researchers departing for Anthropic have added a specific talent-risk dimension that investors now track closely.

Technical Levels in Focus

Despite the recent weakness, Alphabet retains a double-digit year-to-date gain of roughly 10%. The 52-week high of €350.75, set in May, is now 15% out of reach. The 100-day line at €291.33 is the immediate test. A successful defence there could open a path back toward the 50-day average. Further downside would put the 200-day average at €270.73 in play — a level that, if breached, would challenge the medium-term uptrend.

The jobs report will set the tone. A strong reading would keep bond yields elevated, pressuring high-growth tech names. A softer number could revive hopes for rate cuts, offering the stock room to stabilise above the 100-day line. Either way, Alphabet enters the week with a clearly defined technical battleground and a regulatory environment that, for now, appears to give its cloud business an unexpected tailwind.