Alphabet Stock Is Down 16% -- Is September the Month to Buy the Dip?
After four lackluster months, the weakness (rooted in a lack of understanding of all that Google brings to the table) may have nearly run its course.
Overview
If it feels like shares of technology giant and AI powerhouse Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) have underperformed of late, you're not imagining things. They have. The stock's down about 18% from its May peak, and within sight of July's multiweek lows, even though the Nasdaq Composite -- of which it's a key component -- is still near its all-time record high.
Blame worries about the roughly $200 billion it's earmarked for capital spending this year, mostly for artificial intelligence (AI) infrastructure. A bunch of investors remain unconvinced that these outlays will yield a sufficient return on investment. And for many companies in the AI business, 2026's AI spending may not pay off.
Image source: Getty Images.
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Originally published at www.fool.com.
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