The alphabet shares has not been as cheap since 2023. The following happens next.

The current sale of the stock market markets has been disproportionately on artificial intelligence (AI shares) due to their dominance in recent years. Some stocks have become somewhat overheated, which meant that they were the first to sell because investors make profits. However, some in this cohort were cheap in advance and have now reached the status of the bargain.

One of them is alphabet (Nasdaq: Goog) (Nasdaq: Googl)as rarely evaluated in recent years. The story is pretty clear what will happen in the next few months when Alphabet reaches this evaluation and there is a strong signal for what investors should do with the stock.

Alphabet is the parent company of Google, YouTube, Android and other subsidiaries under the Alphabet Rge Shall. Although his business is quite wide, about 75% of the sales of Alphabet come from sources of advertising. This is an important point because the advertising budgets are some of the first areas that are shortened in preparation for or during a recession.

This fear had the Alphabet share sell strongly and did not reach more than two years for more than two years.

From the point of view of the ratio of Price-to-of-Ofering (P/E) (P/E), Alphabet has not been as cheap since the beginning of 2023 when the market was convinced that the United States was on the way to a recession. However, this never really appeared, and Alphabet demolished an incredible growth year in 2023, with the share rose by almost 60% in 2023.

The alphabet stock was rarely so cheap.

It dealt shortly under 20 times during the sale in connection with the covid and two other times: the big recession and 2012. Alphabet’s share has always recovered after these strongly sell out and the shareholders gave fantastic returns.

But could this time be different?

Another object that hangs over Alphabet’s head is the US government’s attempt to break up alphabet for an illegal monopoly. This started in the Biden administration, but continues in the Trump administration. There are currently two ongoing cases: one that wants to break out the search dominance of alphabet and another on the advertising technology. The current means focuses on force Alphabet to sell its Google Chrome browser. Nevertheless, Alphabet is fighting this sale as far as possible because it is of the opinion that it could seriously harm the US economy and even have national security effects.

Well, that comes from Alphabet that tries to protect his current business status. However, these arguments probably have a certain truth for them, although they may be slightly inflated.