Alphabet’s Google Class A stock (NASDAQ: GOOGL) opened Thursday’s trading session at $363. The search giant, which reached a peak of $408 in mid-May has only been sliding in the indices. It has already fallen nearly 9% in a month and is attracting bearish sentiments. GOOGL has traded in the red for the majority of the trading sessions in May and June.
As the broader tech sector displays weakness, trouble for Alphabet is growing after the US road safety agency announced that Google’s fleet of self-driving cars Waymo will have to recall 3,871 robotaxis until it fixes its Automated Driving System (ADS) software. Google stock stands at the receiving end of the development in already troubled waters.
Following the announcement, Stockwits’ sentiment for Google stock dipped from ‘bullish’ to ‘neutral’. The development indicates that the investor community remains fearful of GOOGL’s short-term prospects. This adds pressure to an already strained asset, which is struggling to remain in the green.
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Waymo’s Catalyst Can Be Unfruitful For Google Stock’s Prospects (GOOGL)
Waymo’s revenue is not reported separately but is included in Alphabet’s ‘other bets’ section. This segment contributes to well under 1% of its revenues, and historically remained under ‘operating losses’. The trend will likely continue in the next earnings call due to the cars being taken off the roads. A part of Google’s stock prospects can be affected by the ongoing news. An entry position at this time would be considered to be a risky affair.
Not just Alphabet’s Waymo, but self-driving cars are already facing scrutiny, including Tesla’s EVs. US senators have urged traffic safety regulators to scrutinize Tesla’s full self-driving crash statistics. The inquiry came after Reuters reported that the company could be exaggerating its safety claims. Apart from Google, Tesla stock is already under severe strain and has barely surged in price in 2026.