Nasdaq Correction Sparks Opportunities in Alphabet and AmEx

The Nasdaq has entered a correction, down 12.6%. Investors should see this as an opportunity, specifically with stocks like Alphabet and American Express, which are both experiencing declines yet still show promise for recovery.

Date: 12-03-2025

AI Rating: 7

Nasdaq Correction Impacts Investment Landscape

The report highlights a significant correction in the Nasdaq-100 index, which is down 12.6% from its highs. This decline officially triggers a stock market correction, often creating opportunities for savvy investors to buy stocks at lower prices.

American Express (AXP)

The analysis points to American Express as a potential bargain at a discounted P/E ratio of 18, currently down 20%. The company earns money through card swipe fees, credit card loans, and annual fees, but there are concerns about a possible recession affecting consumer spending. Delta Airlines, a key partner, has downgraded its revenue growth expectations, which may impact American Express' earnings per share (EPS). However, the report provides a silver lining—the premium customer base of American Express continues to generate stable revenue streams despite broader economic concerns.

Alphabet (GOOG)

Similarly, Alphabet faces market fears regarding its future earnings power due to competition in the AI sector, particularly with the rise of generative AI like ChatGPT. However, the analysis indicates that despite such fears, Alphabet's revenues, particularly from Google Search, have shown growth from $48 billion to $54 billion sequentially. Revenue is also supported by the growth in Google Cloud and YouTube, suggesting resilience against market downturns. With a P/E ratio of 20 and a consolidated revenue growth rate exceeding 10%, Alphabet appears to present a strong buying opportunity as well.

Stocks: GOOG AXP