3 Reasons to Buy and Hold Alphabet Stock Forever
Long-term investing is the key to sustainable returns in the stock market because it ignores short-term volatility. But for investors, it's hard to know which companies can stand the test of time. Let's discuss three reasons why the diversified technology giant (NASDAQ: GOOG) (NASDAQ: GOOGL) looks poised for decades of success.
Despite a 18% rally in 2023, Alphabet stock is still down by a whopping 30% from its all-time high of $150, reached in late 2021. Like many stay-at-home winners, the company has faced a slowdown in growth and margins as pandemic-era trends normalize. Cyclical macroeconomic headwinds like inflation and rising interest rates have compounded the problem.
First-quarter sales grew just 3% to $69.8 million, while operating income fell 13% to $17.4 billion. But while advertisers are cutting marketing budgets amid fears of a future recession, this is a predictable part of the business cycle that doesn't change Google's long-term economic moat, which comes from its 86% market share in desktop internet search.
Source Fool.com
Alphabet Inc. A Stock
The stock is one of the favorites of our community with 99 Buy predictions and 1 Sell predictions.
As a result the target price of 180 € shows a positive potential of 33.37% compared to the current price of 134.96 € for Alphabet Inc. A.
