As Google Locks Down a Multimillion-Dollar NATO Deal, Should You Buy, Sell, or Hold GOOGL Stock?

Group 1: NATO Deal with Google - NATO has selected Google Cloud to upgrade its digital systems, which could lead to contracts worth hundreds of millions over time [1] - The deal provides NATO with access to specialized "air-gapped" cloud technology essential for handling classified military information [2] - Google Distributed Cloud technology allows organizations to run AI and analytics on sensitive data while ensuring strict security compliance [3] Group 2: Long-term Revenue Potential - The defense contracts are expected to provide Alphabet with long-term recurring revenue due to their sticky nature [3] - The selection of Google over competitors highlights the company's capabilities in managing classified workloads in high-stakes environments [4] - This deal may open opportunities for similar contracts with NATO member nations, enhancing Alphabet's market position [4] Group 3: Alphabet's AI Developments - Alphabet's market cap has surpassed $3.8 trillion, with stock nearly doubling in the past year, attributed to its expanding AI capabilities [5] - The introduction of Gemini 3 represents a significant advancement in AI, showing substantial improvements over its predecessor, Gemini 2.5 [6] - Early testing indicates that Gemini 3 performs exceptionally well against industry benchmarks, with plans for integration across various Google products [6] Group 4: Competitive Landscape - Despite advancements, ChatGPT continues to dominate the global chatbot market with an 81% share, while Gemini holds a mere 2.8% [7] - Analysts from Bank of America view Gemini 3 as a positive step towards closing the performance gap with competitors in the AI space [7]