What Happened?
Shares of online advertising giant Alphabet (NASDAQ: GOOGL) jumped 4.5% in the afternoon session after the company rolled out its Gemini 3.1 Pro model and announced a new AI partnership with Sea Ltd.
Google made Gemini 3.1 Pro available in preview for its enterprise customers and developers, a move aimed at integrating its AI products into paying business workflows. In addition, the company announced a partnership with Sea Ltd to build an “agentic” AI shopping prototype for its e-commerce platform, Shopee. This type of AI is designed to take actions within an application, rather than just answering questions. The developments appeared to reinforce investor confidence in Google's ability to turn its AI innovations into significant revenue. This sentiment was supported by multiple analysts who had recently issued buy ratings and price targets for the stock.
After the initial pop the shares cooled down to $314.97, up 3.8% from previous close.
Is now the time to buy Alphabet? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Alphabet’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 8.3% on the news that a U.S. judge's ruling in a major antitrust case eased fears of a forced break-up of the company.
The decision allows Google to retain control of its key businesses, including the Chrome browser and Android mobile operating system, which the U.S. Department of Justice had sought to divest. Investors welcomed the news, seeing it as a "massive win" that helps the tech giant avoid the worst-case scenario. While the company was spared a structural break-up, the judge did bar Google from entering into certain exclusive search agreements in the future and will require modest data sharing with competitors. The ruling removes a significant regulatory overhang for the company. Following the news, analysts at Needham reiterated a 'Buy' rating and raised their price target from $220 to $260, signaling renewed confidence.
Alphabet is flat since the beginning of the year, and at $314.97 per share, it is trading close to its 52-week high of $343.69 from February 2026. Investors who bought $1,000 worth of Alphabet’s shares 5 years ago would now be looking at an investment worth $3,066.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report, it’s free.
