Alphabet's Officially In A Bear Market—Time To Buy?

Core Viewpoint - Alphabet Inc. has officially entered bear market territory, with shares down more than 20% from their February all-time high, erasing nearly a year's worth of gains [1][2] Financial Performance - Alphabet's recent earnings report fell short of market expectations, with revenue slightly below forecasts, breaking a streak of consistent outperformance [4][5] - The company has improved its margins but faces higher-than-expected forecasted expenditures, particularly in AI infrastructure and cloud expansion [5][6] Market Sentiment - Investors are increasingly cautious about high spending in AI, with concerns over the timeline for these investments to yield profits [3][6] - Despite the recent struggles, many analysts remain optimistic about Alphabet's long-term potential, with a 12-month stock price forecast of $210.59, indicating a 29.26% upside [7][8] Technical Analysis - Alphabet's stock is showing signs of being oversold, with a relative strength index (RSI) at 32, which historically precedes a bounce in selling pressure [9][10] - The MACD is nearing a bullish crossover, suggesting a potential shift in momentum if buyers enter the market [10] Investment Opportunity - The recent decline has brought Alphabet's stock to more attractive valuation levels, with a price-to-earnings ratio of 20 and record revenue prints [11] - Analysts suggest that this pullback could present a compelling buying opportunity for long-term investors as AI investments begin to deliver returns [12]