Potential Google-Meta AI Deal Has Us Looking at This Portfolio Move
The latest positive development at Google and sharp rise in the stock will likely lead us to some prudent portfolio management.
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Shares of Google (GOOGL) have been on a tear recently, owing to a string of positive developments. The latest include extremely positive reviews and industry benchmark results for its latest Gemini release, dubbed Gemini 3, and a multi-year, multi-million-dollar cloud deal with the NATO Communication and Information Agency to boost the organization's digital modernization. To those, we can now add a report from The Information that Meta (META) is in talks to spend “billions” on Google’s AI chips for its data centers starting in 2027.
That report is driving GOOGL even higher, and will push the shares even further past a 4.5% position size in the Pro Portfolio. This will lead us to do some prudent profit-taking on this extended run in GOOGL later today.
If you didn’t notice it, given all the recent market drama, factoring in this morning’s pre-market move, GOOGL shares look to be up ~40% over the last six weeks. By comparison, the S&P 500 is up all of just 2% over that same time frame.
This means the GOOGL additions we made earlier this year, between $133-$167, by taking advantage of the market skepticism over potential disruption and Google’s own AI efforts, were the right move. It's easy to see with the benefit in hindsight, but it also shows our line of reasoning not to rule Google out on the AI front, given its presence in Search, shopping, and YouTube was on the right path.
At the time of publication, TheStreet Pro Portfolio was long GOOGL and META.
