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This Week's Featured Content Alphabet Cools After the Run: Buy Now or Wait for a Better Entry?Authored by Ryan Hasson. Originally Published: 1/23/2026. 
Key Points - Alphabet's recent 3.5% pullback from its record high appears more like a routine dip and a higher low, rather than the start of a meaningful dip-buying opportunity.
- Valuation remains mid-pack among the Magnificent Seven, suggesting limited near-term margin of safety unless shares retrace closer to $300.
- Strong AI momentum, the Apple–Gemini partnership, and upcoming earnings could keep the stock elevated, forcing sidelined investors to wait longer for a cheaper entry.
Just a week ago, Alphabet (NASDAQ: GOOGL) made headlines and history by crossing the $4 trillion market capitalization mark, becoming the world's second-most-valuable company behind NVIDIA (NASDAQ: NVDA). Fast forward a week, and the stock has cooled modestly, pulling back just over 3.5% from its record highs and finding short-term support near the $320 level. With Alphabet continuing to outperform its Magnificent Seven peers and further solidifying its dominance in the AI race, investors face a familiar question: is this pullback enough to justify stepping in, or should buyers wait for a deeper entry opportunity? GOOGL Pulls Back Toward Support The former CEO of Google calls it the most important thing to happen in 500, maybe 1,000 years of human society. A former U.S. Treasury Secretary says when your great-grandchildren write the history of this period, the political headlines will be the second or third story. The first story is something none of us have seen before. The dot-com collapse, global financial crisis, and COVID-19 pandemic don't compare to what's coming next. We may be entering a period of dramatic, almost unimaginable change. See the full warning and how to prepare now. Alphabet has been in a steady and well-defined uptrend since reporting blowout second-quarter results on July 23, 2025. That earnings report quieted lingering concerns about AI competition, reinforced the company's wide moat, and propelled the stock out of a multi-month base into a new leg higher. Since then, shares have rallied more than 50%, consistently posting higher highs and higher lows. From a technical perspective, the recent pullback from 52-week highs fits neatly within that broader uptrend. This is not a corrective decline nor a classic "dip-buying" setup; it looks like routine consolidation after an extended run. For long-term investors who prefer to buy on meaningful weakness or near fair value, Alphabet has not yet presented a compelling entry. Valuation supports that view. At current levels, GOOGL trades at a P/E of roughly 32.9, placing it squarely in the middle of the Magnificent Seven group. Amazon (NASDAQ: AMZN), Meta (NASDAQ: META), and Microsoft (NASDAQ: MSFT) all trade at slightly lower multiples, and forward P/E comparisons tell a similar story. In short, neither the technical setup nor the valuation makes the recent dip particularly compelling. That said, a deeper retracement toward the $300 level—where the stock previously established a higher low on a longer-term timeframe—would be more interesting. If shares were to pull back, hold that level, and stabilize, it could present an initial opportunity for investors looking to build long-term exposure at a more favorable risk-reward. Fundamentals Continue to Fire on All Cylinders While the technicals argue for patience, Alphabet's fundamentals remain exceptionally strong. Most recently, the company benefited from a landmark announcement: Apple confirmed it will use Google's Gemini models as the foundation for the next generation of Siri, helping propel shares to the $4 trillion valuation milestone. This partnership is significant on multiple fronts. Gemini now sits at the core of Apple devices, Android smartphones, and Google's own Chrome ecosystem, giving Alphabet an unmatched distribution advantage in artificial intelligence. Few companies can claim such embedded reach across global consumer platforms. Beyond AI, Alphabet continues to make progress across its broader portfolio, including cloud, advertising, and autonomous driving through Waymo. Sentiment remains constructive: the stock carries a Moderate Buy consensus rating, and on Jan. 21 Wedbush raised its price target to $360, implying roughly 12% upside from current levels. More Patience Required for Investors Waiting on a Cheaper Entry Momentum, sentiment, and the broader market environment are largely working in Alphabet's favor. Markets rallied midweek after de-escalatory comments from President Trump regarding Greenland, reducing near-term geopolitical anxiety. In that context, investors waiting for a deep pullback may find themselves waiting longer than expected. The next major catalyst will be the tech giant's fourth-quarter and full-year 2025 earnings report, scheduled for Feb. 4, 2026. Analysts expect EPS of $2.58 to $2.65 and revenue of about $104.7 billion, representing solid year-over-year growth. Overall, Alphabet remains a best-in-class compounder with dominant AI positioning. But for sidelined investors hoping for a cheaper, more attractive entry point, broader market weakness or a retracement closer to $300 may be required before the risk-reward truly shifts in their favor.
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