Alphabet's stock declined 4% amid reports of a delay in the release of its Gemini 3.5 Pro AI model. The setback comes despite the company's strong first-quarter earnings, which surpassed expectations by a wide margin.
Earnings Overview
Alphabet posted a record earnings beat for Q1, with earnings per share exceeding estimates by 94%. This performance reflects solid operational results across various segments of the business.
Analyst Outlook
Following the earnings release, Wedbush maintained a bullish outlook on Alphabet’s shares, setting a price target of $671. Analysts continue to express confidence in the company’s long-term prospects despite the short-term delay in AI deployment.
The market reacted negatively to the Gemini 3.5 Pro delay news, which overshadowed the strong earnings report in the short term, causing the stock price drop.
