Why Carter Worth Believes There's Downside To Alphabet

On CNBC's "Options Action," Carter Worth said Google parent Alphabet Inc GOOGL has been the “outstanding winner” over the past year.

The recent action on the stock has been heavy. Charts from July 2020 show a well-defined channel and the stock hovering right on the lower belt, he pointed out.

Google has rebounded well but the stock may not reapproach it this quickly, Worth said. He added that the 150-day moving average is 7% below Alphabet’s current share price.

Looking at the channel since 2009, the share price is currently at the upper end of the channel and is beginning to stall, Worth mentioned.

Comparing the stock’s performance to its relative performance versus the S&P 500 since April 2021, Alphabet is making new relative lows in October. Worth believes there is downside to the stock.