Google (NASDAQ:GOOGL) Nears $180 as VEO 3 Ignites New AI Gold Rush

NASDAQ:GOOGL Shows Renewed Momentum as AI Video Platform VEO 3 Redefines Google's Growth Narrative

Alphabet Inc. (NASDAQ:GOOGL) is once again commanding attention, not merely for its longstanding dominance in digital advertising and search but for emerging as a genuine innovator in the artificial intelligence space. Shares of GOOGL, currently trading around $175, are starting to reflect a pivot in narrative following the commercial launch of VEO 3, Google's native AI video generation platform. Unlike previous products that have struggled to break out from under the shadow of ChatGPT, VEO 3 is triggering the kind of grassroots user engagement and viral social traction that signals mainstream resonance. It's not just a demo anymore—this is now a paid product, locked behind the Google Ultra Plan at $124.99/month, with overwhelming early interest that could redefine how video content is created and monetized. You can track real-time price movement for GOOGL at this link.

VEO 3 Creates a Two-Sided Monetization Engine Across YouTube’s Ecosystem

The VEO 3 platform is far more than an AI gimmick. This technology combines video and audio creation into a single, prompt-driven workflow—an enormous leap over Sora AI and similar platforms that still require third-party audio mixing and editing. What makes this innovation especially compelling is that it runs on the world’s largest AI video dataset—YouTube, a platform Alphabet owns entirely. This gives Google not just a technological lead, but a data advantage so massive that competitors may never catch up.

Monetization is where the story deepens. Google now has the infrastructure to charge users on the creation side through subscriptions and extract value on the consumption end through advertising and data. A creative department, small business, or influencer now has a pathway to generate broadcast-quality ads or content within minutes—and then distribute them on the very platform that Google controls, monetizing both ends of the pipe.

With YouTube Premium subscriptions surpassing 125 million and daily AI-generated content trending globally, the implication is clear. Google isn't just defending its turf—it’s creating a new one. This dynamic will have margin implications in both the YouTube and Google Cloud segments.

Valuation Disconnect Persists Despite Strength in Non-Search Revenue

While the market has been slow to price in the impact of VEO 3, Alphabet’s overall valuation remains compressed. GOOGL trades at just 17.7x forward earnings, compared to 27x for Apple (AAPL), despite showing higher EPS and revenue growth. For fiscal year 2025, Alphabet’s EPS is projected to hit $10.50, and forward estimates for 2026 push that well past $12.00. That puts the PEG ratio well below 1—a rare occurrence in a large-cap tech name with this level of operating leverage.

Looking at Google Cloud, revenue surged 28% YoY, and operating margin more than doubled from 9.4% in Q1 2024 to 17.8% this quarter. Operating income jumped from $900 million to $2.2 billion, a clear sign that the business is scaling efficiently. At this pace, Cloud could represent 20% of Alphabet’s total operating profit by 2026. These improvements are not cyclical. They are structural and driven by both rising demand for AI infrastructure and strong cloud-native tools being rolled into the Google ecosystem.

Alphabet is also returning capital aggressively. The company is reducing its share count by 3.5% annually via buybacks, alongside a 0.5% dividend yield, creating a total shareholder return of around 4% before factoring in any price appreciation.

Search Is Still Growing—and Still Profitable—Despite AI Disruption Claims

Critics continue to raise concerns about competition from OpenAI and Perplexity, yet Google Search revenue rose from $42.6 billion in Q4 2022 to $54 billion in Q4 2024, a 26.7% two-year cumulative increase on a massive base. The argument that ChatGPT is cannibalizing Google’s business hasn’t shown up in the numbers. And even if newer AI search tools attract usage, monetization remains elusive. ChatGPT’s annualized revenue is around $5 billion, compared to Google Search’s $50 billion per quarter.

Regulatory challenges are certainly real, especially around AI content use and copyright enforcement. But Google has far more experience handling compliance across jurisdictions than any new entrant. With offices in over 50 countries, and a $75 billion AI capex budget for 2025, Alphabet has the regulatory and infrastructure advantage to not only defend but expand its moat.

Moreover, according to AI benchmarks, Google Gemini continues to rank among the top three global AI models, suggesting that Google’s underlying technology is not lagging—only underhyped relative to OpenAI. And the moment VEO 3 went live, the market narrative began to pivot. This was a ChatGPT moment for Google, only more visual, shareable, and monetizable.

Waymo Scaling Rapidly as Robotaxi Competition Heats Up

Beyond Cloud and YouTube, Waymo is quietly scaling into a billion-dollar business. After announcing 250,000 paid trips per week, up from 50,000 per week in May 2024, it’s clear the demand curve is vertical. At current growth rates, Waymo is on track to surpass 1 million paid rides per week by end of 2025, implying an annualized revenue base of over $1 billion. This puts Alphabet in direct competition with Tesla (TSLA) as the robotaxi launch from Elon Musk looms in June. The head-to-head between Waymo and Tesla will test not just adoption, but safety, user experience, and monetization models. If Waymo can maintain its gold-standard safety record and expand geographic coverage, it will add both tangible revenue and intangible brand equity to Alphabet’s portfolio.

Insider Activity Remains Confident Across Alphabet’s Leadership

Recent insider transactions show steady confidence from senior management. Over the last 60 days, net activity has been dominated by hold-and-vest behavior, rather than selling into strength. While insiders are not aggressively accumulating shares, there is zero sign of distribution at these price levels. That’s notable with the stock still under $180 and upside estimates extending past $250 per share based on 2026 earnings projections and a 25x multiple.

You can review Alphabet’s full financial profile and insider trends via this link.

Verdict: Buy — VEO 3 Unlocks Monetization Tailwinds Google Needed

NASDAQ:GOOGL is a Buy. With earnings growing near 20%, valuation at 17.7x forward EPS, and now a major product win in the form of VEO 3, Alphabet finally has the narrative shift it needed in the AI race. As investors rotate toward profitable, scalable AI businesses—not just flashy demos—Google’s full-stack model from content creation to monetization will lead. Whether it's the expansion of Google Cloud, the inflection in YouTube revenue, the rise of Waymo, or the defense of Search, Alphabet is firing across multiple engines.

That's TradingNEWS