Prediction: Alphabet Stock Will Soar After July 23

After the market closes on that day, it gives investors an on Q2 results, and I think these figures could be the catalyst Alphabet stock needs to send it soaring, given the current landscape

Moreover, Alphabet is currently one of the most disd big stocks on the market, and has a fairly cheap valuation compared to its peers and the broader market

Furthermore, The market is particularly concerned one item, and if Alphabet vides investors with good news on this front, the stock could be ripe for a surge, in this volatile climate

Image source: Getty Images, in today's market environment

Alphabet trades at a deep discount to its peers and the broader market Alphabet has multiple companies underneath its umbrella, but the largest (and most important) is Google

Moreover, Coincidentally, this is also the segment that investors are the most worried, which is why the stock trades at a discount to its peers

GOOG PE Ratio (Forward) data by YCharts Although it's recovered from its lows, Alphabet's stock still trades for less than 19 times forward earnings, which is far less than every other big stock trades for

Moreover, 7 times forward earnings, so it's valued at a significant discount to the broader market

This conveys deep fear Alphabet's future, as its past has been quite strong

Those are strong results, and if any other big company posted earnings that, they'd have a premium valuation, in this volatile climate

However, investors are worried Google's potential to lose market

The primary concern on Wall Street is that Google is poised to be disrupted by generative AI

More consumers are starting to use generative AI instead of Google, which could cause its ad revenue on the platform to decline, in today's market environment

Additionally, rumors suggest that various generative AI firms are set to launch artificial intelligence (AI)-first web browsers that would threaten Google Chrome

Nevertheless, In contrast, These are all massive headwinds for Google, but they haven't shown up in the results yet (remarkable data), amid market uncertainty

That's in line with where a mature should be growing, and at least from a financial standpoint, all the fears seem to be unfounded

One thing that could be occurring is confirmation bias, where Wall Street analysts and other people in the realm have replaced Google with generative AI, but they've forgotten the vast majority of the population that is never going to make the switch to generative AI because the traditional Google niques ingrained in their internet behavior works just fine for them

Furthermore, Google implemented AI overviews, which vide a generative AI-powered overview of the Google results

For the vast majority of the population, this could be enough AI to keep them on the platform, which will cause Google to maintain its dominance

Nevertheless, I think this is the most ly outcome, and with each passing quarter of Google posting strong results (which I believe it will do in Q2), this thesis will start to become more widely accepted

However, if you see Google revenue start to slip, don't be surprised if the stock sells off drastically, as it would be a confirmation of the bear case

Additionally, I don't think that will happen, and I firmly believe that Alphabet is a great buy today because of the bearish sentiment that has yet to impact Alphabet's financial results

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors

Keithen Drury has positions in Alphabet (fascinating analysis)

Nevertheless, The Motley Fool has positions in and recommends Alphabet (remarkable data)

The Motley Fool has a disclosure policy, considering recent developments.