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Get Paid to Wait on an Alphabet Rebound With This ETF

BY | ETF Database
4:34 am ET 11/05/26 | 10 VIEWS
Even with a solid post-Election Day showing, shares of Google parent Alphabet (GOOGL) are off nearly 17% over the past month because investors fretted over the company’s third-quarter results, but that slide may spell opportunity for income-seeking investors.For investors who want more meat on the Alphabet income bone, the Direxion GOOGL Defined Income Boost ETF (GOIB) is an ETF to consider. The rookie ETF may be an ideal consideration not only for income investors, but those market participants who want to extend this stock some latitude on the rebound front. GOIB could also be useful for investors as they wait for markets to sort out what was a disappointing set of third-quarter results in Google’s internet search business — a core component of the broader investment thesis on this tech company. “I think that’s what really caused the stock to tank because there’s a lot of concern that AI is now eating away at their search business,” noted Dave Sekera of Morningstar. “You have AI overviews, their AI mode. I mean, those are growing as a percentage of their total search queries overall, and so people are concerned that by using those, they’re not able to monetize that part of the business for advertising.”With GOIB, Patience Is a VirtueGiven Alphabet’s status as a battered stock with a barely noticeable dividend yield, GOIB’s twice-monthly distributions make it easier for investors to wait on an Alphabet resurgence. That scenario is likely to materialize at some point. After all, outside of internet search, some of the company’s other businesses are thriving. “Just taking a look at some of the other parts of their business, I mean that Google Cloud business is still expected to generate just crazy growth going forward, especially since now they’re starting to sell those TPUs instead of just renting them out,” added Sekera. “We made a couple of changes to our model and we actually went the other way. While the market sold off as much as it did, our analysts raised our fair value to $450 a share, up from $433.” One way of looking at Alphabet and GOIB today is that markets may be underestimating some of the stock’s bullish points. GOIB makes it easier to wait around until the broader market corrects its Alphabet perspective. “Overall, we think the market’s underappreciating the rapid growth in Google Cloud, and we still think that among all of the AI companies that they’re in still the better position type of spots. They have good vertical integration,” concluded Sekera. “We think that provides a better cost structure than a lot of others, and they have a lot of in-house things going on, like their TPUs, their own AI model; they’re co-designing hardware and software.” For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.

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