Alphabet (GOOGL): An Underrated Magnificent-7 Stock in July?
Alphabet shares dipped 0.7% to $179, struggling to breach the $180 resistance level. Year-to-date losses exceed 5%, yet GOOGL remains the most undervalued among the Magnificent-7 stocks. Historical data reveals a compelling pattern: over the past decade, GOOGL averaged an 8.42% gain in July, finishing higher 90% of the time. A repeat performance WOULD propel the stock above $193—a level unseen since February.
Questions linger about Alphabet's positioning in the AI race. OpenAI's ChatGPT eroded Google's search market share below 90%, but the company's diversification strategy is bearing fruit. Advertising revenue dominated 74% of Q1 earnings, while Google Cloud's contribution surged to 14%. This dual-engine growth underscores resilience beyond core search.
