Alphabet (GOOG, GOOGL) stock is trading lower following the release of its second-quarter results on Tuesday. Despite beating both top and bottom-line expectations, YouTube ad revenue fell short of projections. Laffer Tengler Investments CEO and CIO Nancy Tengler offers her insights on this development.

Tengler emphasizes that overall, Alphabet's report indicates "improved engagement and customer satisfaction in search," along with solid AI investments and appropriate capital expenditures. While the stock is currently under pressure, she argues that "usually that volatility is a friend to the long-term investor."

Tengler notes that she's investing in Alphabet stock primarily for its generative AI potential, which she describes as "the new hot button that analysts are going to be focused on." She says the AI trade is in "the early days of a transformative technology that will change the way all of us work."

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This post was written by Angel Smith