Stock Market Today, Feb. 20: Alphabet Jumps as Gemini Rollout Bolsters $185B AI Buildout
Alphabet (NASDAQ:GOOGL), a provider of internet-related services and products, including search, advertising, and cloud computing, closed Friday at $314.98, up 4.01%. The stock moved higher as investors responded to a fresh Gemini AI enterprise rollout and an Asia commerce partnership, while watching how AI-driven cloud demand and heavy capex plans shape future profitability.
The company’s Trading volume reached 51.9 million shares, which stands roughly 38% above compared with its three-month average of 37.5 million shares. Alphabet went public in 2004 and has grown 12449% since its IPO.
How the markets moved today
S&P 500 (SNPINDEX: ^GSPC) rose 0.70% to 6,910, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) added 0.90% to finish at 22,886. Within interactive media & services, industry peers Meta Platforms (NASDAQ:META) closed at $655.66, up 1.69%, and Microsoft (NASDAQ:MSFT) finished at $397.23, down 0.31%, reflecting mixed large-cap tech sentiment.
What this means for investors
Alphabet’s gains reflect progress in moving its artificial intelligence investments from experimentation to monetization. Reports of an enterprise rollout of the Gemini AI model and a new commerce partnership in Asia indicate broader distribution and potential revenue growth from AI-powered services.
The rally also coincides with Alphabet’s planned $175 billion to $185 billion in AI infrastructure spending for 2026. This capital expenditure plan initially pressured the stock, as investors weighed its impact on future margins. Alphabet begins this spending cycle with substantial cash flow and low leverage, helping address concerns about potential balance-sheet strain. Investors will monitor upcoming earnings for clearer evidence that AI-driven revenue growth can offset Alphabet’s planned infrastructure spending without reducing profitability.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
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