Shares of major tech and AI stocks experienced a decline today, driven by investor concerns over potential slower economic growth and ongoing trade tensions linked to tariffs. This sentiment has pushed the Nasdaq Composite into correction territory. Alphabet Inc (GOOGL, Financial) saw a price drop of 4.29%, reflecting these broader market apprehensions.
Alphabet Inc (GOOGL, Financial) has been under selling pressure as multiple factors converge. Economic indicators hinting at economic slowdown and persistent trade disputes are impacting investor sentiment. Compounding these issues, recent developments from the U.S. Department of Justice (DOJ), concerning Google's holdings and operations, continue to apply pressure to Alphabet's stock. The DOJ has maintained its request for Google to divest its Chrome browser, despite rescinding a proposal to sell stakes in certain AI companies.
In terms of valuation, Alphabet displays substantial financial strength and profitability. The company showcases a strong Altman Z-Score of 12.83, highlighting its robust financial health. Additionally, Alphabet's PE ratio is at 20.67, close to its two-year low, suggesting a potential undervaluation. Its current GF Value is $170.60, indicating that the stock is fairly valued at its current market price of $166.41. You can view more details about this valuation on the GF Value page.
Moreover, Alphabet's revenue growth is consistent, with a one-year growth rate of 16.4%. Its operating margin is expanding at 32.11%, a positive indicator for profitability. Despite recent insider selling activities, the company maintains strong institutional ownership, showcasing confidence from large investors.
In other tech and AI sectors, Taiwan Semiconductor (TSM) reported a 39% year-over-year revenue increase for the first two months of 2025, driven by substantial demand for AI chips. Oracle (ORCL) is anticipated to release its third-quarter fiscal earnings report after the market closes, with expectations of an 11% rise in adjusted earnings per share and an 8% revenue increase, reflecting continued growth in the technology sector.
