{"id":141072,"date":"2026-08-15T17:32:15","date_gmt":"2026-08-15T17:32:15","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/141072\/"},"modified":"2026-08-15T17:32:15","modified_gmt":"2026-08-15T17:32:15","slug":"sergey-brin-wants-google-to-double-down-on-gemini-what-that-means-for-googl-stock","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/141072\/","title":{"rendered":"Sergey Brin Wants Google to Double Down on Gemini. What That Means for GOOGL Stock."},"content":{"rendered":"

\"Alphabet <\/p>\n

Alphabet (Google) Image by Markus Mainka via Shutterstock <\/p>\n

Alphabet’s (GOOGL)<\/a> Google co-founder Sergey Brin has urged its parent company<\/a> to focus more on its proprietary LLM Gemini. The report also indicates that Google\u2019s executives have taken a more hands-on approach to directing its AI operations.\u00a0<\/p>\n

Google has recently announced that its AI wing will have a new boss<\/a>. DeepMind, Google\u2019s AI unit, CEO\u00a0Demis Hassabis will step down, with Koray Kavukcuoglu, previously the AI unit\u2019s CTO and Google\u2019s chief AI architect, taking over as SVP. This is a strategic choice as Google faces intense pressure from OpenAI and Anthropic. Anthropic\u2019s Mythos model and OpenAI\u2019s GPT-5.6 have been lauded, but since the Gemini 3.1 Pro launch, no subsequent Alphabet releases have challenged the AI firms so far.\u00a0<\/p>\n

Kavukcuoglu will oversee Gemini’s development and its app and developer teams. This aligns with Brin\u2019s vision of improving Gemini’s capabilities, as coding becomes increasingly important in developing frontier AI. Google reported that Gemini models now process 22 billion API tokens per minute and the Gemini App has 950 million monthly active users.\u00a0<\/p>\n

About Google Stock<\/p>\n

Alphabet, the American multinational technology conglomerate and parent company of Google, is headquartered in Mountain View, California. The company is aggressively expanding its artificial intelligence operations, centralizing AI leadership and development at its main campus to accelerate progress against rivals. It has committed to massive future spending, mostly on AI infrastructure, to power its next-generation models and products. Alphabet has a market capitalization of $4.236 trillion<\/a>.\u00a0<\/p>\n

Investors are optimistic about Google\u2019s position in the AI landscape (although they are not happy about the hefty spending), and Google Cloud has become a growth engine for the company. Over the past 52 weeks, GOOGL\u2019s stock has gained 70.44%<\/a>, while it is up 10.51% year-to-date (YTD). It reached a 52-week high of $408.61<\/a> on May 18, but is down 15.4% from that level.\u00a0<\/p>\n

www.barchart.com<\/a> <\/p>\n

For a company of its stature, GOOGL\u2019s valuation does not feel overly stretched compared to its peers. Its forward-adjusted price-to-earnings ratio of 16.75 times sits higher than the industry average of 13.12 times.\u00a0<\/p>\n

Alphabet Beats Q2 Estimates as Cloud Surges and AI Spending Rises<\/p>\n

For the second quarter<\/a>, Google\u2019s revenues increased by 24% year-over-year (YOY) to $119.80 billion, which was higher than the $101.28 billion<\/a> that Wall Street analysts had expected. Google Services revenue (mainly from advertising) rose 15% from the prior-year period to $94.54 billion. The bright spot was obviously Google Cloud revenue, which grew by 82% YOY to $24.77 billion.\u00a0<\/p>\n

Profitability also increased in tandem. Total income from operations increased by 30% YOY to $40.77 billion. This was mainly driven by Google Services. Net income per common share (diluted) rose from $2.31 to $9.11 over the same period, far higher than the $2.88 that Wall Street analysts had expected. This bottom-line surge was mainly due to net unrealized gains on its equity securities.\u00a0<\/p>\n

However, concerns about Google\u2019s rising AI spending drove the stock down 7.1% intraday on July 23, even though the results were hotter than expected. The reported quarter marked Alphabet\u2019s first cash burn on record<\/a>. The company burned $5.90 billion in the second \u200cquarter. With Alphabet now predicted to spend $15 billion more this year and with more expected next year, the outlays behind the cash burn will likely increase.\u00a0<\/p>\n

Wall Street analysts have a mixed outlook on Google\u2019s future earnings<\/a>. For fiscal 2026, EPS is projected to surge 89.7% annually to $20.51. However, this is expected to be followed by a 28.13% decline to $14.74 in fiscal 2027. They expect the company\u2019s EPS to climb by 2.1% YOY to $2.93 for the current quarter.\u00a0<\/p>\n

What Do Analysts Think About Google\u2019s Stock?<\/p>\n

Following Alphabet\u2019s quarterly results, analysts at Roth Capital increased the stock\u2019s price target from $435 to $440, while maintaining a \u201cBuy\u201d rating. RBC Capital analysts maintained a \u201cBuy\u201d rating and a $475 price target, while Morgan Stanley analyst Brian Nowak maintained an \u201cOverweight\u201d rating but lowered the price target from $415 to $400.\u00a0<\/p>\n

Tech giant Google\u00a0is a widely followed name on Wall Street, with analysts awarding it a consensus \u201cStrong Buy\u201d rating. Of the 54 analysts rating the stock, a majority of 46 analysts have given it a \u201cStrong Buy\u201d rating, three analysts rated it \u201cModerate Buy,\u201d while five analysts are taking the middle-of-the-road approach with a \u201cHold\u201d rating.\u202fThe consensus price target of $429.63<\/a> represents a 24.2% upside from current levels. Moreover, the Street-high price target of $515 reflects a 48.9% upside.\u00a0<\/p>\n

www.barchart.com<\/a> www.barchart.com<\/a>
On the date of publication, Anushka Dutta<\/a> did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"Alphabet (Google) Image by Markus Mainka via Shutterstock Alphabet’s (GOOGL) Google co-founder Sergey Brin has urged its parent…\n","protected":false},"author":2,"featured_media":33579,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[2408,132,1430,5912],"class_list":["post-141072","post","type-post","status-publish","format-standard","has-post-thumbnail","category-google","tag-gemini","tag-google","tag-google-gemini","tag-n-a"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/141072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=141072"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/141072\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/33579"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=141072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=141072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=141072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}