Why Alphabet Stock Is a Buy Despite YouTube's Revenue Drop
Tech giant Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) experienced a depressed stock price over the past several weeks on the back of a disappointing third-quarter earnings report. In fact, shares reached a 52-week low in November. Its Q3 advertising sales grew a modest 2.5% year over year, compared to 43% growth in 2021.
Worse, its YouTube division experienced its first year-over-year advertising revenue decline -- 2% -- since Alphabet first broke out the segment in 2019. Given the weak results, it's understandable that investors feel skittish about Alphabet stock.
But those looking for a long-term investment will find compelling reasons to buy now that Alphabet's price is well off its 52-week high of $151.55. Even Alphabet's beleaguered YouTube segment possesses rationale for a revenue comeback.
Source Fool.com