Summary
- First problem: declining advertising.
- Second problem: ChatGPT will destroy Google.
- According to my assumptions, to achieve a 12% annual return, it is required to buy Alphabet around $86 per share.
The current bearish market is sparing no one, not even Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), one of the world’s top companies. The macroeconomic environment is experiencing a period of great uncertainty, and tech companies in particular are paying the price. Although Alphabet has proven to be a cash machine in recent years, there is no question that sentiment is changing. The advertising industry is having a downturn, while OpenAI’s new ChatGPT is threatening the efficiency of the Google search engine.
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