Alphabet Stock Hasn't Been This Cheap Since 2023. Here's What History Says Happens Next.

The stock market's current sell-off is disproportionately affecting artificial intelligence (AI) stocks due to their dominance over the past few years. Some stocks have gotten a bit overheated, causing them to be the first to sell off as investors take gains. However, a few in this cohort were already cheap beforehand and have now reached bargain-bin status.One of these is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), as it reached valuation levels rarely seen over the past few years. History is pretty clear about what happens over the next few months when Alphabet reaches this valuation, and it gives a strong signal for what investors should do with the stock.Alphabet is the parent company of Google, YouTube, Android, and other subsidiaries under the Alphabet umbrella. Although its business is quite broad, about 75% of Alphabet's revenue comes from advertising-related sources. This is a key point, as advertising budgets are some of the first areas to be cut in preparation for or during a recession.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool