{"id":663781,"date":"2026-11-01T16:34:13","date_gmt":"2026-11-01T16:34:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/663781\/"},"modified":"2026-11-01T16:34:13","modified_gmt":"2026-11-01T16:34:13","slug":"1-reason-alphabet-stock-is-worth-buying-on-this-pullback","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/663781\/","title":{"rendered":"1 Reason Alphabet Stock Is Worth Buying on This Pullback"},"content":{"rendered":"\n

Shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Google’s parent company, were trading down over 10% on Oct. 29, the day after its third-quarter report. It appears decelerating growth in search revenue and heavy spending on artificial intelligence (AI) are the two main factors to blame. Capital spending on data centers and equipment topped $51 billion in the quarter, pushing free cash flow to negative $9 billion. <\/p>\n

But that spending is funding the one reason to buy the dip: Alphabet<\/a> is becoming more than a search company. Revenue from Google Search now brings in less than half of total revenue, down from 55% a year ago. Revenue outside of Search grew 40% year over year to $64 billion. <\/p>\n

Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″\u2014the R&D phase. “Act 2” is the global rollout. Continue \u00bb<\/a> <\/p>\n

Google Cloud is the star of the show, with revenue more than doubling, and its operating margin climbed to 36% from 24% a year ago. Its backlog reached $561 billion, which puts the cloud business on course to potentially exceed Search revenue over time if it maintains high growth. <\/p>\n

\"A<\/a> Image source: Getty Images. <\/p>\n

The growing profits in the cloud segment show that AI spending is generating returns on investment. Management expects capital spending to increase “significantly” in 2027. This should enable more cloud growth by unlocking more of its backlog, as data center capacity translates into revenue almost as soon as additional compute is brought online. <\/p>\n

At just under 19 times 2027 earnings estimates, Google stock now trades in line with the S&P 500’s average forward earnings multiple. This looks like a good opportunity to invest in one of the most dominant companies at an average valuation. <\/p>\n

Should you buy stock in Alphabet right now? <\/p>\n

Before you buy stock in Alphabet, consider this: <\/p>\n

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a> for investors to buy now\u2026 and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $334,793!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,257,420!* <\/p>\n

Now, it’s worth noting Stock Advisor’s total average return is 874% \u2014 a market-crushing outperformance compared to 209% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n","protected":false},"excerpt":{"rendered":"Shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Google’s parent company, were trading down over 10% on Oct. 29,…\n","protected":false},"author":2,"featured_media":663782,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[6638,114,357,184,268,13368,85,4141,13516,9445,46,2450,8553,9331,266,13517,4861,688,5615,13369,13370,5268,13518,270,13519],"class_list":["post-663781","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-401k","tag-business","tag-business-news","tag-economy","tag-finance","tag-financial-information","tag-il","tag-investing","tag-investment-tools","tag-investor","tag-israel","tag-market-news","tag-mortgage","tag-mutual-funds","tag-personal-finance","tag-quote","tag-real-estate","tag-retirement","tag-stock","tag-stock-research","tag-stock-valuation","tag-stocks","tag-suze-orman","tag-tax","tag-track-portfolio"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/663781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=663781"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/663781\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/663782"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=663781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=663781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=663781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}