We recently published a list of 10 Mega Cap Stocks Gaining Bullish Momentum This Week. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOG) stands against other mega cap stocks gaining bullish momentum this week.
The S&P 500 index started the week with a bang after staying under pressure for a few days. There was a realization that Wall Street may have overestimated the impact of tariffs. Once the dust settles, the market will continue to go higher, just like the US economy which continues to grow despite challenges.
When the broader market corrects itself due to uncertainty, such as the one brought about by Trump’s tariff wars, mega-cap stocks also get affected. This provides investors, especially the ones that invest at regular intervals, to take another bite of these impressive stocks. The same situation happened during the last week, and we believe that after Monday’s impressive recovery, the trend is about to reverse.
Mega cap stocks like the ones in our list have driven the market in recent months and are therefore likely to be the ones leading it again. We decided to come up with the top 10 mega-cap stocks in the S&P index that have lost a considerable chunk of value in the last month and are now trading at a discount, a valuation gap that could quickly be recovered during this week’s trading.
To come up with the list of 10 oversold S&P 500 Mega-Cap Stocks To Trade This Week, we only looked at stocks with a market cap of at least $200 billion that have lost the most value in the last month.
A laptop and phone open to Google’s services in an everyday setting.
Alphabet Inc. (NASDAQ:GOOG)
Alphabet Inc. (NASDAQ:GOOG) provides different platforms and products in the US, Canada, the Asia-Pacific, Latin America, and Africa. The company operates in Google Cloud, Google Services, and Other Bets segments.
Google is down 9.79% this year so far compared to the S&P’s decline of 1.58%. This underperformance is causing concern, especially when one sees Google lose market share to emerging AI-powered search engines like ChatGPT and Perplexity. A consequence of losing this market share is that the company may also lose out on advertising revenue to competitors like Meta Platforms. But there are reasons to be optimistic.
Alphabet Inc. (NASDAQ:GOOG) has successfully used AI-powered recommendations to increase viewing time on YouTube. AI Overviews, a search engine feature that gives users a direct answer to their query using generative AI, has significantly improved search quality. This is an example of how Google is a company that can not only fit AI products into its existing offerings but also distribute them to users without any additional burden.
This is why Google has had amazing shareholder returns in the last two decades, something that is unlikely to stop as it reduces its reliance on search engine revenue, a portion of its business supposedly under threat from competitors.
Overall, GOOG ranks 1st on our list of mega cap stocks gaining bullish momentum this week. While we acknowledge the potential of GOOG as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as GOOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
