Despite AI Disappointments, Alphabet (GOOG) Stock Options Could Be Favorably Mispriced

With reports coming out that Alphabet (GOOG) is delaying the release of its updated flagship AI model, it was inevitable that GOOG stock suffered a sizable loss in response. Fundamentally, the concern is that with myriad companies pushing ahead with their AI initiatives, Google will fall further behind. As such, the options market has responded with pessimism, with the smart money prioritizing downside protection.

Still, there’s good reason to hold the line with GOOG stock, especially with Alphabet scheduled to release its second-quarter earnings report (on July 22 after the market close). Primarily, Google enjoys the “everywhere moat.” Because the tech giant’s services — Search, YouTube, Gmail, Android, Maps and Docs — are deeply embedded in the daily lives of billions of users, this ubiquity provides a unique, unparalleled data advantage that competitors struggle to replicate.