Alphabet Shares Rise 1.33%, Implied Volatility at 30.71

Alphabet shares rose 1.33% to $209.46, with moderately bullish activity. Options volume was roughly in line with average, with calls leading puts for a put/call ratio of 0.46. Implied volatility increased by 1.4 points, and put-call skew steepened, indicating increased demand for downside protection.

Alphabet (NASDAQ:GOOGL) shares rose 1.33% to $209.46 on Monday, reflecting moderately bullish activity in the market. The increase comes on the heels of reports that Apple (NASDAQ:AAPL) is in talks to use Google’s Gemini AI models to power a revamped Siri [1]. The potential partnership has sparked investor interest and could reshape the competitive landscape for both companies.

The reported talks suggest Apple is exploring a significant shift in its AI strategy. Apple has been cautious about AI integration, preferring to develop its own capabilities. However, the potential use of Google’s Gemini AI for Siri could indicate a new direction for Apple’s AI framework [1]. Gemini AI models have consistently ranked at the top of key performance benchmarks, offering advanced capabilities such as video summarization and conversational abilities [2].

The partnership discussions come at a time when Google faces regulatory scrutiny over its search deals with device makers. A U.S. court is expected to rule soon on remedies that could affect Google’s search placement agreements [1]. Google pays billions of dollars annually to maintain its default search position on Apple’s iPhone and Samsung devices, and any changes to these agreements could impact Google’s revenue.

Alphabet’s stock performance reflects investor confidence in the company’s AI leadership position. The shares have gained 21.8% over the past year, with the company maintaining a market capitalization of $2.51 trillion [2]. The potential Apple partnership could further bolster Alphabet’s AI credentials and position it as a leader in the AI market.

The increased implied volatility and steepened put-call skew indicate that investors are seeking downside protection, suggesting a mix of optimism and caution in the market [2]. While the partnership discussions are promising, the regulatory risks and competitive dynamics remain significant factors to consider.

References:
[1] https://finance.yahoo.com/news/alphabet-stock-rises-reports-hint-184258839.html
[2] https://www.tipranks.com/news/the-fly/moderately-bullish-activity-in-alphabet-with-shares-up-1-33-thefly