The weakness on American techs continues in the wake of the Fed’s restrictive policies. These stocks also include Alphabet, which published its quarterly results last night, which have disappointed expectations. In fact, Alphabet closed the quarter with net profits of $16.4 billion, down to $24.62 per share against the expected $25.91. The turnover was $68.01 billion, up 23% but lower than the expected $68.11 billion. Alphabet subsidiary subsidiary YouTube’s focus in social media and video sharing was expected to increase advertising revenue by 23% to $7.4 billion. It earned only $6.87 billion, which was below expectations. As with Meta Platforms, the company has been impacted by recent restrictions on targeted advertising introduced by Apple.

Alphabet [GOOGL.O] is at $2,329.9 (-2.5%) in pre-trading, after losing 3% yesterday. This is a bad break for the stock that punctured an important support in the $2,500 area before resting around $2,400. The break was confirmed yesterday also given the weak results. The SHORT is confirmed towards $2,262 and later towards $2,100.

We recommend going SHORT on the stock by buying the Leverage Shares Alphabet -1X ETP (ISIN: IE00BKTW9N20), with an increase in exposure on any returns to $2,500. Target should be $2,262 and and stop/loss should be at $2,550.