"If you're heavily invested in tech stocks, you've surely heard concerns that we may be approaching (or in) a bubble. Similar to the dot-com bubble in the late 1990s and the housing bubble in the early 2000s, tech stocks are on fire, and some bears believe they are overheated today. Is that true? I think the concern is overstated, but it's also important to acknowledge that markets sometimes drop. Corrections are nothing new and are, in fact, part of the heartbeat of the stock market."
"Alphabet is quietly having a very good year -- recovering from a downturn in the first half of the year to register gains of more than 50%. Alphabet stock is down just 3% from its all-time high and will roll into 2026 at the peak of its powers. Its problems at the beginning of the year were primarily legal in nature. The Department of Justice accused Google of unfair practices regarding its search and advertising businesses, which it said created an illegal monopoly. The issue hung over Alphabet stock as investors worried that the company would be forced to sell off its Chrome browser or another equally lucrative business. However, a federal judge finally ruled this year that wouldn't be the case, and now Alphabet can continue to operate, although it must share search data with its competitors and stop issuing exclusive distribution c"
Tech stocks are experiencing strong gains but fears of a bubble may be overstated. Market corrections of 10% or more happen frequently and markets historically recover. Investors cannot avoid pullbacks, so focusing on long-term stability and resource-rich companies is prudent. Alphabet has rebounded strongly this year, recovering from an early downturn to register gains exceeding 50% and sitting near its all-time high. Legal challenges from the Department of Justice created investor uncertainty, but a federal judge ruled against forced divestitures while imposing data-sharing and distribution restrictions. Long-term investors should favor resilient, well-capitalized tech leaders able to resume growth after corrections.
Read at The Motley Fool
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