The short-lived dip we saw in Alphabet Inc.’s (NASDAQ:GOOGL) stock price in March offered a rare opportunity to pick up shares in the preeminent leader in online advertising for a discount. This is something we haven’t seen for some time. With this stock recently rebounding fully and now hovering near all-time highs at the time of writing, some investors may lament their missed opportunity to pick up shares of Alphabet on the dip.
Despite its recent rise toward all-time highs, on a number of metrics, Alphabet stock still looks attractive. From a growth perspective, Alphabet offers investors access to the third largest provider of cloud services by a large American technology company. This growth segment deserves a significant amount of attention from investors. The company’s Waymo division (autonomous driving) and Google Play segments are other areas of long-term growth that have yet to be monetized to the degree many believe they can.
The majority (roughly 82%) of Alphabet’s revenue still comes from advertising, and despite initial concerns about lower potential advertising spending as a result of Covid-19, we’ve seen this segment hold up particularly well in the company’s last earnings report. With more companies focused on e-commerce rather than bricks and mortar sales, Alphabet’s long-term outlook remains as robust as ever.
Invest wisely, my friends.
