Alphabet's stock price fell 0.52% to $1,116.06, or a decline of $5.79, following a decision by a MoffettNathanson analyst Michael Nathanson to cut his price target to $1,250 a share, down from $1,290 previously.
Citing a sluggish stock price and disappointing earnings, the report by Nathanson argued there is a "growing lack of conviction that Google can maintain their historic 20%+ revenue growth."
"Truth be told, we had to double check the fact that Alphabet has materially underperformed the S&P 500 over the past 12 months and year to date," Nathanson wrote.
Bucking that downbeat assessment, Google announced plans on Monday to pump an addition $1.14 billion into building data centers in the Netherlands, a move that includes a new Middenmeer facility.
While Alphabet stock has rallied since hitting a low of $976.22 on Christmas Eve during the stock market rout, the stock price of Google's parent has had a bumpier 2019.
The tech giant's stock price hit a high of $1,287.58 a share April 29, only to slide back to $1,042.22 on June 5.
While shares of Alphabet have since embarked on a modest upswing, they still remain roughly 13% below that April high, Nathanson noted in his report on Alphabet.
Disappointing first-quarter earnings raised some red flags, Nathanson noted, arguing a close examination of Alphabet's financials point to an erosion in search revenue growth for Google in the U.S. over the past few years.
"If Google's core Search business is indeed finally reaching maturity, then there is risk that growth deceleration will persist into the future," Nathanson wrote.