Alphabet Stock Hasn't Been This Cheap Since 2023. Here's What History Says Happens Next.

Group 1: Market Overview - The current stock market sell-off is disproportionately impacting artificial intelligence (AI) stocks, which have been dominant in recent years, leading to some stocks reaching bargain-bin status [1] - Alphabet's stock has reached valuation levels rarely seen in the past few years, signaling potential investment opportunities [2][4] Group 2: Alphabet's Financial Performance - Approximately 75% of Alphabet's revenue is derived from advertising, making it vulnerable to cuts in advertising budgets during economic downturns [3] - Alphabet's stock has not been this cheap since early 2023, despite a significant growth of nearly 60% throughout the year [4] Group 3: Historical Context and Recovery - Alphabet's stock has historically recovered from significant sell-offs, including during the COVID-related sell-off, the Great Recession, and in 2012, providing strong returns to shareholders [5] - Concerns about a potential recession and government actions against Alphabet for alleged monopoly practices are present, but the company has a history of bouncing back [5][6] Group 4: Government Regulations and Future Outlook - The U.S. government is pursuing actions to break up Alphabet's dominance in search and advertising technology, with ongoing cases that could impact its business structure [5] - Despite regulatory concerns, the company believes that spin-offs could create value, and the focus remains on purchasing Alphabet stock at its current valuation [6][7]