Alphabet stock slips after earnings, time to buy, Barron’s says

Alphabet stock dropped after what looked like a strong earnings report -and it may have created a buying opportunity, Jacob Sonenshine writes in this week’s edition of Barron’s. There wasn’t much wrong with the numbers from Alphabet, home to Google and YouTube. Expectations were likely high heading into earnings, given the stock’s 30% gain this year heading into the print, but there were other worries too, the author says. First and foremost was the amount of money Alphabet is spending on artificial intelligence, particularly after capital expenditures rose 91% in the second quarter and are likely to keep on rising at a fast rate. The drop, though, seems too extreme, Sonenshine adds.