Summary: Market correction expected, but Amazon and Alphabet remain strong buys

From Nasdaq: 2025-02-11 04:55:00

Market indexes are near new highs, but 2025 could bring more volatility as a correction looms. The S&P 500’s price-to-earnings ratio is 30, well above the historical average. Warren Buffett’s strategy of buying strong companies at discounted prices is wise during corrections. Investors should be prepared for potential pullbacks.

Amazon (NASDAQ: AMZN) remains a strong buy despite trading at 36 times 2025 earnings estimates. With $638 billion in annual revenue and a focus on cost efficiency, Amazon is a tech behemoth. Amazon Web Services leads the cloud market with a 30% share and offers AI tools for businesses. AWS revenue rose 19% year-over-year in Q4.

Alphabet (Google) (NASDAQ: GOOG, GOOGL) is another growth stock to consider on a pullback. With a dominant position in digital advertising and a growing cloud business, Alphabet’s revenue hit $350 billion. Google Cloud’s revenue grew 30% in Q4, attracting major clients like Mercedes-Benz. Alphabet’s cloud customers consume eight times more computing capacity than before.

Investors can start a position in Alphabet now, as the stock trades at 21 times this year’s earnings estimate. Analysts project 16% annualized earnings growth, making the stock undervalued. A further dip in share prices would present a buying opportunity. Google’s AI-driven services and market dominance make it a solid long-term investment.

Don’t miss “Double Down” stock recommendations for potentially lucrative opportunities. Nvidia, Apple, and Netflix saw massive returns after being recommended as “Double Down” picks. The current alerts for three companies could yield significant profits. Act now to secure a position before it’s too late, as these stocks have shown exceptional growth potential.



Read more at Nasdaq: 2 Super Growth Stocks to Buy in the Next Market Correction