A blue-chip large-cap technology leader, Google parent Alphabet Inc (NASDAQ:GOOG) is a company I’ve had on my watch list for some time, and would recommend readers do the same. During the initial North American selloff related to the domestic outbreak of the coronavirus pandemic, shares of Alphabet sunk to levels which represented a significant discount to the traditional earnings multiple investors ascribed to the stock. Those with Alphabet on their watch lists may have been able to grab shares at a discount, on opportunity that does not come around every day.
The main reason for the decline in what would only otherwise be described as an iron-clad stock is the company’s significant advertising business. Accounting for more tan 80% of the company’s revenue, online advertising spending was initially thought to be rife with the potential for risk, should various large corporations (as well as SMEs) decide to significantly reduce advertising spending to stay alive.
With stimulus spending and various fiscal programs limiting investor’ concern on this front, and renewed focus on growth sectors such as cloud computing, streaming (Google Play), and autonomous driving (Waymo) driving tech stocks higher, investors have seen shares of this tech giant climb to near record highs of late, a good sign for patient investors with active watch lists. Alphabet remains one of the highest quality equity options investors looking for portfolio staples ought to consider, and on any such pullback in the future, I’d highly recommend investors take a “buy the dip” approach.
Invest wisely, my friends.