Market Correction: Time to Buy Top Stocks Like Amazon & Alphabet

Market correction opens buying opportunities. Top stocks like Amazon and Alphabet may offer growth potential despite recent dips, worth considering for investors focusing on the long game.

Date: 23-03-2025

AI Rating: 7

Market Correction Overview

The current market correction presents an opportunity for long-term investors to buy shares at lower prices. The tech-heavy Nasdaq Composite has faced a correction, and many stocks are down. This could signify a favorable buying moment for those viewing the market from a perspective of sustained value.

Amazon Insights

Amazon is currently down 11% this year, impacted by concerns over trade wars. However, the company's diversified business model helps mitigate risks. Its revenue streams include e-commerce, advertising, and cloud services, which are showing strong performance. Notably, Amazon's ad business is projected to reach an annual run rate of $69 billion, and its cloud business (AWS) is on track for a $115 billion run rate. In the last year, Amazon saw overall net sales of $638 billion, marking an 11% year-over-year increase.

Despite a challenging year in 2022, Amazon rebounded strongly, indicating its resilience in tough economic environments. This pattern suggests that current stock prices may create a buying opportunity for investors aiming for long-term gains.

Alphabet Analysis

Alphabet faces regulatory scrutiny but continues to post strong results. Google ad revenue rose by 10.6% year over year, reaching $72.5 billion in Q4. Overall, Alphabet's revenue surged by almost 12%, totaling $96.5 billion. The company’s strong presence in online search and its expansive business in streaming and cloud solutions bolster its growth potential.

Moreover, Alphabet's push into artificial intelligence positions it well for future growth, despite legal challenges. The initiation of dividends adds additional incentive for investors considering this stock, and the overall outlook remains optimistic as long as regulatory risks are managed appropriately.

In conclusion, both Amazon and Alphabet exhibit significant growth potential and present attractive buying opportunities during the current market correction. Investors should evaluate these stocks for potential long-term rewards.

Stocks: AMZN GOOGL