What Happened?
Shares of online advertising giant Alphabet (NASDAQ:GOOGL) jumped 4.9% in the afternoon session after the company introduced Gemini 2.0, a significant update to its AI model. Alphabet also introduced Deep Research, a feature that acts like a research assistant capable of advanced reasoning. In a company blog, Alphabet revealed that Gemini 2.0 would be immediately available only to developers and trusted testers. The company is expected to gradually make the update available to more users and include it in products like Gemini and Search.
After the initial pop the shares cooled down to $194.21, up 4.9% from previous close.
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What The Market Is Telling Us
Alphabet’s shares are quite volatile and have had 19 moves greater than 2.5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was a day ago when the stock gained 5.4% on the news that the company shared progress in quantum computing by unveiling its new quantum chip, Willow, which solves more complex problems while maintaining accuracy. Using Random Circuit Sampling (RCS)—a rigorous test for evaluating a quantum computer's ability to solve difficult tasks—GOOGL demonstrated that its quantum machines outperform traditional supercomputers, even when dealing with noise and interference. The stock's reaction suggests investors are optimistic about the potential these advancements hold not just from a technological standpoint but from a business perspective as well.
Alphabet is up 40.6% since the beginning of the year, and at $194.21 per share, has set a new 52-week high. Investors who bought $1,000 worth of Alphabet’s shares 5 years ago would now be looking at an investment worth $2,891.
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