Alphabet Inc. (NASDAQ:GOOG) has been falling in price lately and the big question is whether the stock is a good buy today, or if it’s headed for steeper declines in the weeks ahead.
The company released a strong earnings report last month which showed sales rising by 21% year over year, but unfortunately that fell short of what analysts were expecting. As a result, the stock has been in a bit of a tailspin since then, although it has been falling even before that: in the past three months, Google’s stock has declined by 12%.
What has made the stock even more bearish is that it recently made a dangerous crossover, with its 50-day moving average falling below its 200-day mark, which is a “death cross” and could trigger even more selling among technical analysts and speculators.
The stock has had strong support at around $1,000, only briefly closing below that price point during the past year. However, given how the markets have struggled lately, it wouldn’t be a surprise to see the stock breach that support again.
For investors, I see this as a potentially good opportunity to buy the stock at a reduced price. While Google might not be a value stock with a price-to-earnings multiple of around 40, it’s still a very appealing growth stock that still has a lot of potential.
We saw the stock go on a bit of a decline earlier in the year only for it to come back even stronger in the months following. While there’s no guarantee we’ll see that process repeat again this time around, it’s still a top tech stock that could look great in your portfolio.
