Google stock under $100 a share is a buy: Rosenblatt Securities
- Barton Crockett recommends buying Google stock at the current level.
- He's convinced much of the bad news is already factored into the share price.
- GOOGL is currently trading more than 30% down versus the start of 2022.
“Tech” is taking a big hit this year as the U.S. Federal Reserve continues to tighten its monetary stance. But it’s the “future” and so, it remains a great pick for the long-term investors, according to Barton Crockett.
Crockett reveals his favourite FAANG stock
A name within this space that particularly pops out to the Senior Analyst at Rosenblatt Securities is Alphabet Inc (NASDAQ: GOOGL) that slipped under $100 a share last week. On CNBC’s “Squawk on the Street”, he said:
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If you’re willing to look longer than the next couple of months, it’s a company that’s here for the long term and is trading at a great valuation. You can own it for Search, you can own it for YouTube, you can own it for Cloud.
Waymo – the multinational’s autonomous driving segment and its other equity investments were among other reasons why Crockett recommends buying Google stock that’s now trading at a price-to-earnings multiple of 18.63 (near its five-year low).
Much of the bad news is factored in
Alphabet Inc is expected to report its Q3 earnings in the final week of October. Consensus is for it to earn $1.25 a share – down about 10% on a year-over-year basis.
The multinational generates much of its revenue from “advertising” that tends to take a hit in a recession. But Crockett is convinced much of the bad news is already factored in.
The unknowable means you could miss an opportunity if you wait too long. So, try to get it on the pullback and your safety net is that you’re buying a good business at a good valuation.
On the flip side, he is dovish on Meta Platforms Inc (NASDAQ: META) even though the stock is down nearly 60% at the time of writing.