Google's Bold Move: Gemini Goes Solo to Boost Brand and Flexibility

As of last week, Google A (GOOGL) experienced a 2.65% decline, marking two consecutive days of losses and a cumulative drop of 3.03% over that period. Over the past week, the stock fell by 3.48%, contributing to a year-to-date decline of 5.09%, with the current market cap standing at $2,190.05 billion.

Recently, Google subtly updated its pricing page to reveal the cost of using its new AI video generation model, Veo 2. Launched in December of the previous year, Veo 2 aims to rapidly produce high-quality video content via artificial intelligence. The pricing is set at 50 cents per second, or about $30 per minute, translating to $1,800 per hour. This cost highlights its premium nature compared to a high-budget film such as "Avengers: Endgame," which reportedly had a production cost of $3.56 billion, equating to roughly $32,000 per second.

However, actual usage may not require the complete duration paid for, and Veo 2 is particularly efficient at generating clips over two minutes long, unlike the extensive spans of films like "Avengers."

On February 19, 2025, Google A (GOOGL) traded at $185.27, seeing a rise of 0.82% on that day, with a trading volume of 19.5 million. Over the past five days, the company’s shares have appreciated by 0.90%, though February has seen a decline of 9.19%, contributing to a year-to-date decrease of 2.13%. Remarkably, the stock has surged by 31.29% over the past 52 weeks.

Alphabet Inc., as the parent company of Google and its subsidiaries, reorganized in 2015. Initially founded in California in 1998 and later reincorporated in Delaware in 2003, Alphabet's diversification spans technology, life sciences, investment, and research. These enterprises include Google, Calico, GV, Google Capital, and Google Fiber, with the company emphasizing internet search, cloud computing, and advertising technologies.

On February 19, Google A (GOOGL) revealed an insider trade, where executive O'Toole Amie Thuener sold 2,824 shares on February 18 at a price of $187.43 per share, totaling $529,300.

Additionally, on February 18, Google began withdrawing its AI assistant Gemini from its primary iOS app, aiming to encourage downloading its standalone Gemini app. The assistant, launched to compete with ChatGPT and similar services, supports continuous dialogue and voice interaction but requires downloading from the App Store to remain accessible on iOS.

This strategic shift, designed to offer a broader scope for technical improvements and compliance with local regulations, also more clearly defines the scope of paid subscriptions through features like Gemini Advanced. By transitioning to an independent app format, Google aims to enhance the feature’s flexibility and capitalization while maintaining brand distinction. Through this detachment, Alphabet looks to maintain technological control and brand focus, despite potential challenges in user transition.

In summary, Google's move to separate Gemini into its app reflects a broader ambition to enhance product control, offer commercial flexibility, and strengthen brand identity, a daring bet that may well position the company advantageously in the competitive landscape of AI technology.