not vested
Alphabet (GOOG) is down more than 12% since Oct. 1, as its ad revenue growth has slowed, in addition to facing more competition for ad dollars from Amazon. They are also facing headwinds in their cloud business from MSFT gaining market share.
GOOG is caught up in this silly acronym and it gets punished along with Facebook headlines that are specific only to FB. GOOG stock also suffers when Netflix's valuation comes into question.
So this is a clear case of a sentiment crisis in the Google stock price and not its business prospects. Unfortunately, in early October, GOOG needed to hold the $1130 zone but it didn't. Its failure brought in momentum sellers for another 10% dip. And when you look at its year-to-date gains, it is still in the red.
Luckily, this strengthens the fundamental argument for Google stock. GOOG's forward price-to-earnings ratio is now 24 ...
Those who have held on to GOOG stock this long would be making a mistake in selling it now. All the reasons for owning it a few months ago still exist, as nothing in the macro economy changed to materially affect its fundamentals.
Despite the headline fears, investors who buy for the long term will recognize the value that is building in Google stock as its price falls. They all have an entry level in mind and all they need are a few days without new headline risk.
Source: Investor Place