Disappointment in earnings:
The alphabet is a very profitable and will remain a profitable high growth company going forward. The company has already reached a scale that established high barriers to entry to create another YouTube platform, search engine, or to penetrate the mobile market through a different type of software. Therefore, any significant decrease in the operating margin is unlikely.
Europian Commission Fine:
Alphabet has been on an uptrend for the past 9 years.In 9 years the stock has only three corrective pullbacks higher than 10%.
The reasons for a correction do not suggest the end of Facebook and Google dominance in the digital advertising industry. It is a normal and healthy pullback and broad market correction leads to this kind of correction.
Finally, the correction could be an excellent opportunity to buy this blue chip stock for long term investment.