Buy Alphabet Inc (GOOGL) Stock on the Next Pullback

Despite likely lackluster third quarter earnings, GOOGL’s future looks bright

Tech behemoth Alphabet Inc (NASDAQ:GOOGL) is certainly the most underappreciated of the FANGs, but that doesn’t mean it’s not a solid pick. The stock has been a reliable performer over the past five years, and thanks to its impressive dominance in the search engine space, the company is likely to continue delivering over the next five years.At $985 per share, Google stock is trading at 32 times its forward earnings, so it’s not cheap. However, I believe we’ll see a GOOGL stock pullback toward the end of the month when the firm releases its third quarter results. Worries surrounding Google’s earnings report would provide a good entry point for long-term investors, because while the firm is presently facing some challenges, the future looks bright for Google stock in the longer term.

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At $985 per share, Google stock is trading at 32 times its forward earnings, so it’s not cheap. However, I believe we’ll see a GOOGL stock pullback toward the end of the month when the firm releases its third-quarter results.

Worries surrounding Google’s earnings report would provide a good entry point for long-term investors, because while the firm is presently facing some challenges, the future looks bright for Google stock in the longer term.

GOOGL Earnings Disappointment

The reason I’m cautious about Google’s upcoming earnings report is Google CFO Ruth Porat’s warning during the firm’s second quarter earnings call. She stressed the fact that cost pressures were continuing to weigh on Google noting that, “Headcount additions tend to be seasonally high in Q3, because that is when we bring on new graduates. In…

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