Alphabet (GOOGL -0.95%) delivered less-than-ideal second-quarter earnings results at the end of July, with multiple segments just missing analyst projections. Although the company's stock persevered and soared in the first two weeks of August, prices have recently dipped.

Here's why now could be the best time to invest in Alphabet stock.

Peaks and valleys

Similar to its recent stock fluctuations, Alphabet's second-quarter report offered some highs and lows. Several of the company's segments underperformed, with revenue coming in at $69.69 billion versus the expected $69.9 billion. YouTube advertising brought in $7.34 billion when analysts projected $7.52 billion, while Google Cloud revenue earned $6.28 billion against the expected $6.41 billion. Moreover, revenue growth slowed to 13% vs 62% in the prior year as pandemic restrictions eased and consumer spending increased. 

On a more positive note, one of the brightest spots of Alphabet's second quarter came from its advertising segment, which increased 12% to $56.3 billion. Google's "Search and Other" segment also rose from $35.85 billion in 2021 to $40.69 billion in 2022.

Despite underperforming second-quarter earnings expectations, Alphabet's stock rallied considerably in the first half of August -- proving investors' long-term faith in the company. In the run-up to the company's Q2 2022 report, Alphabet stock fell 8% between July 21 and July 26. However, by Aug. 15 it had then risen 16.2%, reaching a height the company's stock hadn't seen since the beginning of May.

More recently, the stock has slightly dipped, falling 5% between Aug. 18 and 23. Prospective investors may have a chance to buy Alphabet stock now, especially considering everything the company has in the works and the fact that the stock is still down 21% year to date. 

Promising ventures

Google reorganized under the name Alphabet in 2015 as its business grew to include a wide range of brands and pursuits that reached far beyond the search engine that brought the company global recognition. Alphabet's incredibly varied endeavors now see it participating in industries such as gaming, consumer tech, video streaming, robotics software, self-driving cars, and much more. However, two of its business segments are especially promising: Advertising and YouTube.

Despite Alphabet's many businesses, about 80% of the company's revenue is related to advertising in some form, with 70% of that coming from Google Search ads. In its second quarter, Google's advertising revenue was up 11.6% to $56.3 billion. Considering digital advertising spending worldwide is likely to increase from $521 billion in 2021 to $876 billion in 2026, a 68% increase, Alphabet could be in for a significant revenue increase. 

Regarding YouTube, the segment saw the most prevalent deceleration in Alphabet's Q2 2022 report, with sales rising 5% when the same figure grew 84% the year before. However, the company is making significant moves to boost the video platform with a venture into streaming and creating a worthy competitor to ByteDance's TikTok.

This coming fall, Alphabet is reportedly launching a streaming marketplace through the YouTube app, where users can browse various services and subscribe directly through the platform. The company is now negotiating with multiple streaming companies about joining the "channel store." If successful, the new service would see Alphabet create a new revenue stream through its cut of subscriptions made through YouTube, taking a cut out of the $80 billion streaming industry.

In 2021, YouTube launched its "Shorts" feature to rival the fastest-growing mobile application in history, TikTok. The feature allows consumers to create short videos through the YouTube app and has already grown to 1.5 billion monthly active users. The addition to YouTube could further fuel Alphabet's advertising revenue, as advertisers look to appeal to younger audiences who favor the condensed video style.  

Is Alphabet stock a buy?

Despite a weaker-than-expected second quarter, Alphabet investors have plenty to look forward to ahead. The company may have its eggs in many baskets, but its biggest businesses are in markets that will see substantial growth for years to come. And the stock is currently on sale -- down over 21% year to date.