"Alphabet ( NASDAQ:GOOG )( NASDAQ:GOOGL ) is hitting its stride in artificial intelligence. Its Gemini model continues to advance rapidly in capabilities and adoption. Late last month, Google launched Project Genie, an experimental world model that generates interactive, real-time 3D environments from simple text or image prompts. The release has sent shockwaves through the tech sector, particularly among software stocks. Investors worry that rapid AI progress could automate tasks currently requiring specialized design and development tools."
"Today, the stock trades around $21 per share, representing a roughly 85% decline from its peak. Alphabet's secret investment portfolio bought over 215,000 shares of Figma during the third quarter, which were valued at $11.18 million at the end of the period. The position was revealed in Alphabet's 13F-HR filing in November. Since then, Figma shares have fallen approximately 58%, turning the stake into one of Alphabet's worst-performing public investments."
Alphabet's Gemini model and the experimental Project Genie generate interactive, real-time 3D environments from simple text or image prompts and have accelerated AI capability and adoption. Investors fear these advances could automate tasks that now require specialized design and development tools, pressuring software stocks. Figma shares plunged from a post-IPO high of $142.92 to around $21, an approximate 85% decline, and Alphabet bought over 215,000 Figma shares valued at $11.18 million at quarter end; that stake has since fallen about 58%. Alphabet's secret portfolio totaled $2.41 billion at Q3, while large positions in AST SpaceMobile and Planet Labs are valued near $912.8 million and $700 million, up 69% and 110% respectively since Q3.
Read at 24/7 Wall St.
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