Alphabet’s Google stock (NASDAQ: GOOG) is trading near $360 after an uptick on Tuesday. Bulls are eagerly waiting for the search giant to climb above the $400 mark and regain its lost territory of $408. Several Wall Street firms, including Bank of America, have predicted that GOOG could breach the $400 wall and reach a high of $430. The optimism for the equity is at an all-time high, but its price is not reflecting the sentiments.
Google stock at $360 has made investors realign with their choices about investing in the company or sidelining it for other equities. Their concerns are valid, as tech stocks have been at the receiving end of increased capex spending, which has gone above the $180 billion mark. The spending is yet to see any returns, as the infrastructure is still being built. In this article, we will explain whether you should still buy Google stock at this level, or give it a miss.
Also Read: SK Hynix Stock Rallies Hard and Jumps 27%: Should You Buy SKHY Now?
Should You Still Buy Google Stock?
Among all the AI competitors, Alphabet is the only company that has been financially disciplined in its spending. The company has been printing massive free cash flow from its legacy search advertising business. They are also using it to aggressively to subsidize its AI infrastructure. This will give investors a highly reasonable valuation, making Google stock a lucrative equity for traders. This makes the downside heavily protected, with the risk-reward being highly asymmetrical.
Google stock’s ongoing volatility and price dips are the prime cause for retail investors to panic sell. Warren Buffett’s Berkshire Hathaway established a massive $10 billion private placement position right around this threshold. Simultaneously, Cathie Wood’s ARK Invest aggressively absorbed millions of dollars in public shares at the $358 level. This shows that institutional giants have already positioned themselves in Google stock at this price zone.
In conclusion, Google stock at $360 is still a strong buy as the downside is being cushioned. AI businesses are seeing hyper-growth cycles, and Alphabet is among the first in line in the development. An entry position in GOOG now is still considered the best bet. Alphabet is equipped with a complete package in the AI sector and directly benefits from the enterprise growth.