Key Stats for Alphabet Stock
- Price change for Alphabet stock today: -4%
- $GOOGL Stock Price as of Aug. 5: $362
- 52-Week High: $409
- $GOOGL Stock Price Target: $428
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What Happened?
Google (GOOGL) said chief scientist Jeff Dean is leaving the company after 27 years. Dean is widely credited with helping build some of Google’s most important technology.
He’s starting a new company called Discovery Loop, alongside longtime Google engineer Sanjay Ghemawat.
The startup will focus on AI for science and engineering. Google plans to invest in it, and CEO Sundar Pichai described the exit as friendly, saying Dean simply wanted to “try something new.”
At the same time, Demis Hassabis, who runs Google DeepMind, is stepping back from day-to-day operations. He’ll become chairman of DeepMind and take on the added title of chief scientist for all of Alphabet.
Hassabis said he wants more time to focus on the bigger picture of where AI is heading. He’ll keep working closely with Pichai on major AI strategy.
Filling the gap, DeepMind’s technology chief, Koray Kavukcuoglu, is being promoted to lead Google’s AI division. He’ll now oversee development of Gemini 4, the company’s next big model, and will report directly to Pichai.
This shake-up lands at a tricky moment for Alphabet stock.
The company just posted a quarter where it turned cash flow negative for the first time ever, largely because it’s spending so heavily on AI infrastructure. Full-year capital spending is now expected to reach as high as $205 billion.
Still, the growth numbers tell a strong story.
Google Cloud revenue jumped 82% last quarter to $24.8 billion, easily outpacing rivals. Amazon Web Services grew 37% in the same period, and Microsoft Azure grew 43%. Pichai pointed to AI infrastructure and demand for Google’s own chips, called TPUs, as the main drivers behind that growth.
Google also released three new Gemini models this week as it works to catch up to Anthropic in cybersecurity tools. One major release, Gemini 3.5 Pro, has been delayed and still hasn’t shipped.
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What the Market Is Telling Us About Alphabet Stock
The drop in Alphabet stock shows investors are uneasy about losing two of the company’s most important AI minds at the same time, even during a period of fast growth.
Leadership changes at the top of any AI division tend to make investors nervous, especially when the company is already spending record amounts of money to stay competitive.
For now, the market seems to be treating this as a risk worth watching rather than a reason to panic, since Google’s underlying cloud and AI business is still growing much faster than its biggest competitors.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
