Despite its low valuation, enormous balance sheet and recent addition of $70 billion to its buyback plan, the stock is out of favor. Bear markets strike indiscriminately, as selling hits virtually every stock in the market. However, the fear with Alphabet is that a recession will kill advertising and thus, weigh on its revenue, profit and cash flow.
In that scenario, it’s true: all of those would take a hit. However, it’s also true that advertising is usually one of the last expenditures to get cut and one of the first to bounce back, as companies are scrambling for sales.$Alphabet(GOOGL)$ $Alphabet(GOOG)$
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