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What a difference a year can make.
One year ago, Alphabet was at risk of being “broken up” by a federal judge. Meanwhile, investors were concerned that the company’s search engine business would be disrupted by ChatGPT.
Fast forward to today and Alphabet has proven to be incredibly resilient.
Alphabet’s new AI model is called Gemini 3. It’s receiving rave reviews and is said to be far superior to ChatGPT. Gemini is now closing the gap in terms of usage too. It now 650 million active users versus 800 million for ChatGPT.
The latest quarterly results showed a 16% increase in revenues. And net income grew 33%.
These impressive results have sent Google stock up 64% this year.
That makes it the #1 performer among the Magnificent 7. In fact, the returns are almost twice the returns of runner up Nvidia.
Alphabet’s business appears to be firing on all cylinders. Shares could continue to outperform next year as the company reaps the rewards of its AI investments.
Ian Wyatt