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Trends & Analysis
News

Tesla shares spike despite earnings miss

News

Gold loses some shine after hitting record highs

News

Avoid the tech wreck with PayPal?

News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

Asset Watch

Add Alphabet to your seasonal shopping list?

Tuesday, June 19, 2023

With S&P 500 seasonality now firmly bearish, it’s no surprise the index declined on Jun. 16. As the next two weeks promise to rival the seasonal weakness that often unfolds from January to March and in September/October, it’s one of the worst periods of the year.
While the prospect of a pullback may seem material, the S&P 500 often makes a new annual high in July. If Alphabet demonstrates weakness, it could present an excellent entry point for new investors.
The advertising giant’s 50-week moving average has been a key support and resistance level over the last few years. And during the January/February 2023 rally, Alphabet reversed at the 50-week MA before heading toward its previous lows. Alphabet has also found support at its 50-week MA following the breakout in April.

As a result, if the seasonal weakness pushes Alphabet closer to its 50-week MA, it could present a buying opportunity for those that missed out on the recent rally. Even though artificial intelligence (AI) has dominated the headlines recently, many of the winners trade at astronomical valuations. In other words, they have already priced in substantial revenue and earnings growth.

On the other hand, Alphabet trades at roughly 28x earnings, which is well below NVIDIA’s 222x. So, the former boasts AI upside, dominant advertising revenue, and a reasonable valuation.

Should you buy Alphabet on any dip, or are there better ways to play the AI revolution?


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