New York, Jan 12, 2026, 10:14 EST — Regular session
Alphabet’s Class C shares (GOOG), which don’t have voting rights, dropped 0.5% to $327.60 in Monday’s morning session. This came after Google introduced new shopping and checkout features for its Gemini app in partnership with Walmart and other retailers.
Alphabet faces a clear challenge: as shoppers turn to chatbots for purchase advice, Google wants to keep those queries—and the resulting sales—within its ecosystem. Investors are closely monitoring if generative AI can both safeguard Google’s core search business and unlock fresh revenue streams in commerce.
Walmart and Google announced that users can now drag Walmart and Sam’s Club products directly into Gemini, enabling a seamless shift from browsing to buying without ever leaving the chat. “Moving from traditional web or app searches to agent-driven commerce is the next major leap in retail,” said Walmart U.S. CEO and incoming Walmart Inc chief John Furner. 1
Google announced in a separate blog post that it’s rolling out the Universal Commerce Protocol, or UCP — an open standard designed to link an “agent” (software that handles tasks for users) to retailer systems across browsing, checkout, and support. The company said UCP will soon drive checkout through its AI Mode in Search and the Gemini app, tapping Google Pay info saved in Google Wallet, with PayPal integration slated for later. 2
At the National Retail Federation convention in New York, companies unveiled “agent-led” shopping — AI designed to streamline the process from recommendations straight to orders with fewer clicks. PayPal vice president Mike Edmonds cautioned there won’t be a sudden “snap of the finger” breakthrough for agentic commerce but urged retailers not to sit on the sidelines. Shopify CEO Tobi Lutke told reporters shoppers need to stay “in charge.” 3
Alphabet’s drone delivery arm, Wing, announced plans to extend Walmart drone service to 150 more stores over the next year, aiming for over 270 locations by 2027. Walmart exec Greg Cathey called the strong uptake “confirmation that this is the future of convenience.” Wing CEO Adam Woodworth added that as the service rolls out to more cities, including a Jan. 15 start in Houston, the target is to deliver everyday essentials “in minutes.” 4
The stock’s decline mirrored a weaker mood in U.S. equities: the SPDR S&P 500 ETF fell 0.1%, while the tech-focused Invesco QQQ also slipped 0.1%.
Markets grappled with new uncertainty surrounding the Federal Reserve as it revealed grand jury subpoenas related to Chair Jerome Powell’s Senate testimony, sparking fresh concerns over central bank independence and driving investors toward safer assets. 5
The commerce push is still in its early stages and depends on retailers sharing product feeds, payments, and account links without alienating shoppers. AI tools that can purchase for consumers remain limited. Plus, any effort to keep more shopping “inside Google” could attract regulatory scrutiny as pressure on big tech mounts.
Tech stocks are eyeing Tuesday’s U.S. consumer price index report for December, set for release at 8:30 a.m. ET. The data could shake up rate expectations and, in turn, valuations for megacap growth names. 6
Alphabet’s next key date is Feb. 4, when it will report fourth-quarter and full-year 2025 results at 4:30 p.m. ET. Investors will be watching closely for any clues on advertising demand, how Google Cloud is performing, and the expenses tied to its AI expansion. 7
