For investors in Alphabet (NASDAQ:GOOGNASDAQ:GOOGL), it has been a trying year. Yes, there have been some waves of hope for this mega-cap online tech player. However, GOOG stock has underperformed many investors’ expectations, now down more than 25% year-to-date.

Today, GOOG stock is down another 7% as investors assess a host of catalysts.

The first is a lackluster earnings report from a social media company Instantaneous (NASDAQ:INSTANTANEOUS). Snapchat’s parent company reported some rather dismal numbers, missing estimates, and a bigger-than-expected loss of free cash flow. As a result, concerns about digital ad spend are growing. It’s a relevant question for companies like Alphabet, whose Google division provides the lion’s share of revenue and cash flow.

Other key factors that appear to be in play today are concerns over compensation for victims of fraud in the UK, as well as the potential that after the stock split, GOOG stock may not really have lots of positive catalysts to take this stock. upper.

Let’s dive into what to do with today’s awesome move in Alphabet.

Is GOOG Stock a Buy on Today’s Impressive Decline?

Seeing a mega-cap stock like Alphabet lose more than 7% of its value in a single day is indeed a big step forward. With billions of dollars in valuation wiped out, investors may consider this stock a great buy. After all, the company is now trading around 18 times its earnings following this decline.

However, there are plenty of headwinds being priced in by investors right now. The revenues of other digital advertising-focused companies are being hit hard. And while Google’s underlying business model is fundamentally different from Snap’s, it’s clear that investors are taking a cautious approach in this space right now.

As a result, while it’s interesting to see GOOG shares trading around the $107 mark (at the time of writing), the fact that this stock split has officially taken place takes away from one of the major drivers not Alphabet fundamentals. In the absence of other catalysts, investors seem to have lost interest. In this market, that can mean significant short-term downward pressure, like the one we’re seeing today.

While I think GOOG stock is a great long-term bet, it could be a bumpy few months ahead. Until we have some indication of where this economy is headed, it will likely be turbulent for all stocks. Indeed, seeing Alphabet decline as it did today should be an indication for investors.

As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.