Peterhead came out on top at Forthbank to leave us six points adrift at the foot of League 1.
Bryan Gilfillan had the Blue Toon ahead at the break and they increased their lead with a Phil Johnston own goal.
Steven Doris pulled one back but Cammy Kerr added a third for Jim McInally’s men. Sandy Cunningham reduced the deficit with 11 minutes left and he came close in stoppage time but we remain without a home league win this season.
Binos boss Stuart McLaren made one change to the side that lost 2-0 to Raith Rovers in the Scottish Cup, with Dale Fulton replacing David McClune in midfield.
There was a place on the bench for on-loan Falkirk striker Lewis Small and he made his debut as a substitute with 20 minutes left. Willie Robertson, suspended, and injured duo Lewis Coult and Darren Lee Smith again missed out.
Albion claimed a well-earned 1-1 draw at Balmoor on the opening day of the season but Peterhead won on their previous visit to Forthbank and triumphed again.
Steven Noble rattled the bar before Gilfillan headed in Jamie Stevenson’s corner after half an hour and, aside from Doris forcing a decent save from Graeme Smith, we struggled in the first period.
The visitors doubled their advantage early in the second half when the unfortunate Johnston could only divert the ball into his own net after Reidford had made an excellent stop from Ryan Strachan.
Doris gave us hope with this first league goal, forcing the ball home after it bounced around the box following a corner, but within three minutes Peterhead restored their two-goal cushion, Kerr finding the net from 20 yards with the aid of a deflection.
Cunningham grabbed his fourth goal of the season with a diving header but the visitors held on to stay sixth in the table.
Stirling Albion: Reidford, Hamilton, Forsyth, Fulton (Comrie 57), McGeachie, C Smith, Johnston (Small 70), Beith, Doris, G Smith (Weir 57), Cunningham.
Subs (not used): Wedderburn, Creaney, McClune, Paterson (GK).
Scorers: Doris 69, Cunningham 79
Peterhead: Smith, Kerr, Noble, Strachan, Ross, Gilfillan (Rodgers 74), Millar, Redman, McAllister (Brown 82), Stevenson, Cox (Cowie 61).
Subs (not used): Richardson, McLaren, Jarvie (GK).
Scorers: Gilfillan 30, Johnston og 51, Kerr 72
Referee: Barry Cook