Down 41%, Alphabet Stock Is a Once-in-a-Decade Buying Opportunity Right Now
Tech giant Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) had a rough 2022. Brands cut advertising budgets as consumer spending slowed in response to scorching inflation, putting pressure on the company's top line. That headwind was intensified by unfavorable foreign exchange rates driven by the strengthening of the U.S. dollar.
Alphabet reported disappointing financial results over the past year. Revenue increased by just 18% and free cash flow declined by 5%. That performance marks a material deterioration from the prior year when revenue climbed 39% and free cash flow soared 93%. As a result, many investors have unloaded the stock, and Alphabet's share price currently sits 41% below its all-time high set in November 2021.
For context, Alphabet has never seen its share price fall that sharply at any other point in the past decade. But investors can put a positive spin on that drawdown by viewing the current situation as a once-in-a-decade buying opportunity.
Source Fool.com
