What's Going On With Google Parent Alphabet Stock On Friday?

Zinger Key Points

Google to cut Workspace prices by 71% for U.S. agencies, aiming to save government up to $2B by Sept. 2025.
Deal boosts Google’s federal push as it battles Microsoft, adds Gemini AI tools to challenge Office dominance.
China’s new tariffs just reignited the same market patterns that led to triple- and quadruple-digit wins for Matt Maley. Get the next trade alert free.

The U.S. General Services Administration (GSA) reached an agreement with Alphabet Inc. GOOG GOOGL Google Thursday to lower the costs of Google products and services for the federal government.

Google agreed to offer Workspace to every federal agency at a temporary price reduction of 71% off the current Multiple Award Schedules Program (MAS IT) pricing, regardless of transaction size.

GSA’s Information Technology Vendor Management Office (ITVMO) is working with Google to expand competitive pricing for its Google Cloud Platform (GCP) services.

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The temporary Workplace pricing arrangement on MAS expires on September 30, 2025.

Google offerings include integrated, advanced AI-powered capabilities like Gemini, NotebookLM, and Advanced Gemini 2.0.

Google’s move reflects rivalry with Microsoft Corp MSFT. It also coincided with U.S. President Donald Trump’s drive to minimize federal spending.

Google’s discount under the GSA deal could generate up to $2 billion in cost savings for federal agencies, Reuters reports

The GSA became the first target of the Department of Government Efficiency (DOGE) layoffs, which Elon Musk headed.

Microsoft’s estimated share of the U.S. government software market stood at 85% in 2021, Reuters cited Omdia.

Google beefed up its offerings with AI features powered by its large language model Gemini to its Workspace suite, intensifying rivalry with Microsoft. The Air Force Research Laboratory has already used Workspace.

Separately, Google downsized hundreds of its platforms and devices unit workforce on Thursday, dedicated to its Android software, Pixel phones, and Chrome browser, Reuters reported citing the information.

In February, Google announced a voluntary exit program for over 25,000 employees in its Platforms and Devices division, including major teams behind Android, Chrome, Google Photos, and hardware products like Pixel, Fitbit, and Nest. In 2023, the company laid off ~12,000 employees, ~6% of its global workforce, spending $2.1 billion on severance and related costs.

Price Action: GOOGL stock is up 1.04% at $154.42 at last check Friday.

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