2 Low-Cost Tech Stocks
As a high-growth business, the IT sector is recognized for being expensive. Many companies, particularly in the software sector, aren’t even profitable. However, this does not rule out the possibility of finding value plays in the sectors. All you have to do is know where to look.
Continue reading to learn about two stocks that match the bill today .
Alphabet Stock: A Tech Behemoth That Can Weather The Ad Slowdown
Advertising inventories have taken a beating over the previous year as demand has dwindled, putting a strain on digital advertising networks. This includes Alphabet ( NASDAQ:GOOG 0.95%) ( NASDAQ:GOOG L 1.16%), Google’s parent company, whose revenue growth slowed to 13% in the second quarter owing to unfavorable comparisons and advertiser uncertainty.
However, Alphabet stock ( NASDAQ:GOOG L) has continued to fall since then, despite the company’s sustained dominance in an internet searches. Though the firm will experience headwinds such as slower ad demand and a higher dollar for the remainder of the year and maybe into 2023, such assumptions are already built into the stock price.
Analysts anticipate that Alphabet’s sales growth will decelerate to single digits in the year’s second half and that profits per share will decline as well. However, advertising demand will ultimately return, and the dollar will not continue to increase indefinitely. When the ad market recovers, Alphabet’s performance should improve on both the top and bottom lines.
That implies investors have an excellent chance to purchase shares of the firm at a price-to-earnings ratio of 18, or close to 16, when the company’s $125 billion cash hoard is included. Alphabet has also been actively buying back stock, which will assist ...
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