Why Alphabet Inc (GOOGL) Stock Is the Perfect Buy on This Dip

Earlier this week, we received earnings results from Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL). The company beat on earnings-per-share and revenue results, but GOOGL stock fell slightly. Shares are now down about 4% on the week after bouncing off Thursday’s lows.

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What should investors make of GOOGL stock now? I think the bigger question is, what’s the market going to do? All indicators point to a recovering economy and strong business environment.

However, on Thursday, a possible crack came through. The PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) dove suddenly around midday. The ETF recovered more than half its losses to close down 0.63%. But it showed how quickly the market can unravel despite no news.

Alphabet, Apple Inc. (NASDAQ:AAPL), Nvidia Corporation (NASDAQ:NVDA) and countless others were taking it on the chin for no apparent reason. My concern is that, coming into the potentially volatile late-summer/early-fall period, there could more declines in store.

GOOGL Stock: Google and YouTube

For starters, Alphabet own’s the world’s two most popular sites — Google and YouTube. Because of these properties, the overall business remains in good shape. Paid clicks climbed 52% year-over-year and 8% sequentially. YouTube users now watch an average of one hour of videos per day, a rather startling figure when you think about it. (Seriously, who has time for that?)

Additionally, YouTube TV has launched. At $35 per month, users get unlimited DVR cloud storage and live-streaming access to more than 40 channels. When it first launched, it was only available in five markets: New York, Los Angeles, the Bay Area, Chicago and Philadelphia. That list has since grown, as I found out my local area now has it, too. It’s now available in additional cities like Atlanta, Dallas, Detroit, Houston,…

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