Anything that is susceptible to recessions has been pummeled in the past few months, as sharply rising interest rates have caused a fear factor among the investing public of a deeper downturn. Whether that comes to fruition or not remains to be seen, but in the interim, there are some stocks that are bargains at the moment.
Ad stocks have been absolutely destroyed because ad spending contracts during recessions. After all, ad spending requires businesses to want to spend money on ads, so those at the margins will spend less or suspend ads altogether. When aggregated, this can mean a substantial decline in total ad spending during downturns, and ad stocks have already priced that into a large extent.
The good news is that if it buy google ads threshold account doesn't get significantly worse, ad stocks are very cheap. That goes in particular for the mothership in terms of ad stocks, Alphabet (NASDAQ:GOOG). The last time I covered Alphabet, the stock was on the verge of breaking out of a consolidation pattern. That never came to fruition, however, given the months since July have been quite harsh to equities, as we test the lows once again this week. However, the basic thesis is intact, but the valuation is much better now.
Signs of life, but much work to do
We'll start with the daily chart, and while I won't try to paint this as a pretty chart, I do think there is cause for optimism given the low-risk setup that's in place right now.
Chart: Alphabet (GOOG / GOOGL)
