Some Investors Have Dropped Alphabet Stock Over the Delayed Release of Its Gemini 3.5 Pro Model. Here Are 900 Million Reasons Why They're Wrong.
Alphabet stock recently faced a sell-off due to delays in the release of its Gemini 3.5 Pro AI model. However, the author argues this reaction is shortsighted, highlighting that Alphabet has reached 900 million monthly Gemini users and successfully monetized its AI services.
Why it matters
It highlights the tension between investor expectations for rapid AI innovation and the long-term strategic value of established tech ecosystems.
Recently, investors appeared to initiate a sell-off of Alphabet ( GOOGL +0.58% ) ( GOOG +0.21% ) after reports surfaced that the company's release of its Gemini 3.5 Pro model -- which was announced back in May -- is delayed.
Alphabet stock is barely beating the S&P 500 year to date, and the knee-jerk reaction by some shareholders reveals that some investors don't quite understand how much ground the company has gained in such a short time.
Specifically, the 900 million monthly Gemini users the company now has.
Understandably, investors are disappointed that the latest Gemini models haven't been released yet, especially considering that Google Gemini isn't as capable at important AI tasks like coding as its rivals, Claude and ChatGPT.
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