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Greg Smith

Alphabet price drop could be advantage

Despite subsidiary Google being under regulatory scrutiny, a number of substantial long-term earnings levers remain in place.

The recent correction in the technology sector has spread far and wide but at its epicentre are the "super-cap" stocks – in particular the FAANG (Facebook, Apple, Amazon, Netflix, Google) complex.

Concerns have focused on valuations, with some of the bigger names pulling back 10 per cent or more, albeit after strong runs since the pandemic lows. This may open up a window of opportunity for investors prepared to take a long-term view.

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Greg Smith is head of research at investment research and funds management house Fat Prophets.

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    Original URL: https://www.afr.com/wealth/personal-finance/alphabet-price-drop-could-be-advantage-20201008-p5639a