Alphabet Inc. GOOGL may take a battering, but it will not be broken.
The stock tumbled after European Union regulators knocked the Internet search giant with a record $2.7 billion fine in June, but has since propped itself back up. “Every time the stock takes a hit, it bounces back,” TheStreet’s founder Jim Cramer said during a special conference call with members of his Action Alerts PLUS club for investors. “And that’s simply because it has so much going for it.”
Cramer pointed out that Alphabet’s last big sell-off in March — when advertisers were said to be pulling out from the company’s YouTube unit over concerns about ads appearing next to hate speech or other objectionable content — proved to be short-lived. The Wall Street Journal reported at the time that companies such as General Motors GM , Starbucks SBUX , Coca-Cola KO , PepsiCo PEP , Wal-Mart Stores Inc. WMT and Dish Network Corp. DISH were fleeing the service, but business soon returned. The stock quickly climbed more than 20% to an all-time high.
“What an opportunity that was,” Cramer said. “One month after hitting lows, the stock was trading above the level it was before the so-called ‘scandal’ — and we all know what happened next. This recent pullback is the same type of look. Google’s fundamentals remain intact.”
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