Jul. 30, 2025 8:13 AM ETAlphabet Inc. (GOOGL) StockGOOGLGeneva Investor2.19K FollowersGoogle Search grows 12% YoY, resilient despite AI-driven zero-click searches rising to 69% and a 22% drop in news site traffic.So, why does GOOGL trade at a discount? I think it's because the company is stuck in "defense" mode. The market wants to see less dependency on Search.Google Cloud (31% YoY growth) and Subscriptions (20% YoY growth) are promising but would need 6.9 years to match Search in size. YouTube grows at the same rates of Search.Alphabet’s forward P/E of 19 reflects market doubts about Search dependency and won't move until a new catalyst. There is a potential 75%-100% upside if AI diversifies revenue.I reiterate my HOLD rating due to reliance on Search and lack of new AI-driven business models, despite strong Search ad performance.SlavkoSereda/iStock via Getty ImagesAt a Forward P/E below 20, Alphabet Inc. (NASDAQ:GOOGL) is cheap for a Tech stock. If all it took to evaluate a good stock was reading a P/E, my article could end here with a strongThis article was written byGeneva Investor2.19K FollowersI either put my money into low cost funds or in single stocks that (I think) are asymmetric bets. My portfolio is roughly 50/50 between the two. I like to write about Macro and Fundamentals, with the (painful) awareness that Momentum and Sentiment are what really matters. That’s the reason I never try to time the market and I only buy stocks if I am willing to hold them for at least 10 years.When it comes to fundamentals, I think everybody knows the market is forward looking, but few truly understand what that means. I don’t look at a P/E number and decide to buy if a stock is “cheap”. I see markets as literally just the meeting point between demand and supply. Predicting human behavior is the key.That’s why I always try to understand what the market is seeing in a stock beyond the numbers, which often implies trying to understand sectors, industries and long term growth trends. My approach requires ingenuity, curiosity and a good dose of naivete, as well as being comfortable in (sometimes) going against the current.I am currently bullish AMD, PLTR, TSLA, broad US equities and Bitcoin. I am based in Geneva, Switzerland (hence my SA name) and I have a Master’s Degree in Business. If you are looking for daily macro, geopolitics & investing nuggets, you can follow me on Twitter @GenevaInvestor. Friend "Rex Investing" is also a contributor to Seeking Alpha. All opinions and analysis are exclusively my own.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments