So Alphabet stock just had one of those days that makes you wish you’d bought more shares last week. The Google parent company shot up 6% on Monday, basically dragging the entire Nasdaq along for the ride like that friend who somehow convinces everyone to go out when you just wanted to stay home and watch Netflix.
What’s got everyone so excited? Two words: Gemini 3. No, not the zodiac sign – Google’s latest AI chatbot that they’re calling their “most intelligent model.” And honestly, after watching ChatGPT dominate headlines for what feels like forever, it’s about time Google reminded everyone they’re still in the game.
The AI Arms Race Gets Spicy
Here’s the thing about Gemini 3 – it’s not just another chatbot update. Google’s CEO Sundar Pichai is basically saying this thing can read between the lines better than your therapist. “Gemini 3 is much better at figuring out the context and intent behind your request,” he wrote, which in tech-speak means “we finally built something that won’t give you a recipe for chocolate cake when you ask about market volatility.”
The numbers are pretty telling too. While ChatGPT still owns 73% of the AI chatbot market (because apparently being first matters), Gemini has clawed its way to 13% market share with 650 million monthly users. That’s roughly the same as Microsoft’s Copilot, which means we’ve got ourselves a proper three-way race.
Warren Buffett Enters the Chat
But wait, there’s more! (I know, I sound like an infomercial, but stick with me.) Two weeks ago, Warren Buffett – yes, that Warren Buffett – decided to drop $4.3 billion on Alphabet shares. That’s 17.8 million shares for those keeping score at home, and the first time Berkshire Hathaway has ever touched Google stock.
When the Oracle of Omaha suddenly decides your stock is worth buying, people notice. It’s like getting a five-star Yelp review from Gordon Ramsay – it carries weight.
The Magnificent 7’s Favorite Child
While the rest of the Magnificent 7 stocks have been having what we’ll politely call “a rough month” (most are in the red), Alphabet has been the overachiever, posting 22% gains. The secret sauce? It’s actually reasonably priced.
With a P/E ratio of 29 and a forward P/E of 27, Alphabet is basically the discount option in a luxury store. Compare that to some of its tech peers trading at nose-bleed valuations, and suddenly Google looks like that rare find at a thrift shop – quality stuff at a reasonable price.
The Bottom Line
Analysts have a median price target of $330 per share, suggesting there’s still some upside left even after Monday’s rally. Between the AI momentum, Buffett’s blessing, and a valuation that won’t make your accountant cry, Alphabet is having its main character moment.
Just remember – past performance doesn’t guarantee future results, but sometimes the stars (and the algorithms) align just right.