In this article, I’m going to discuss why I think this trend will continue and why this recent market selloff could represent an excellent window to add to an existing position or initiate a new one.
As most investors know, Alphabet generates most of its revenue from advertising and has been able to really corner the market for online advertising in recent decades, which has turned out to become a very stable growth driver for the company.
While I remain bullish on the ability of Alphabet to continue to leverage its market power in this business, bears of the company’s advertising business often note the cyclicality of advertising and the reality that businesses tend to cut marketing budgets and operating expenses like advertising first when tough economic times such as these come about.
While that may be true, I remain convinced the long-term secular growth story underpinning Alphabet will continue over the long-run, and do view this recent slide as a long-term accumulation opportunity for those with the means to do so. I would suggest all investors ease into any such accumulation and do not go “all in” quite yet, as more downside may be on the horizon.
Invest wisely, my friends.