Alphabet, the parent company of Google, has crossed the historic threshold of a $3 trillion valuation, joining Microsoft, Apple, and Nvidia in the tech giants club.
The stock has surged by over 30% since July, driven by online advertising and the growth of Google Cloud powered by generative AI.
Despite legal pressures in the US and a record fine of €2.95 billion in Europe, Alphabet continues to grow and achieve new stock records.
Google’s Meteoric Rise Since Summer
Since late July, Alphabet’s stock has surged by over 30%, reaching a record high of $252. This surge is driven by strong quarterly results, marked by double-digit growth in revenue and profits. Investors are applauding its core business dynamics in online advertising and the rise of Google Cloud fueled by demand in generative AI.
In just a few weeks, Google’s market capitalization has gained nearly $700 billion, now placing it just behind Nvidia, which crossed the unprecedented $4 trillion mark this summer.
Legal Battles in the Background
This ascent has not been without turbulence. Alphabet remains under pressure from US and European authorities. In the US, Google narrowly escaped an injunction in early September that could have led to its breakup after being found guilty of abusing its dominant position in online search.
Despite the rejection of the Department of Justice’s request for the sale of Chrome and potentially Android, appeals have been set in motion that could last two years.
Brussels Takes a Stand
In Europe, the Commission fined Alphabet €2.95 billion in early September for anticompetitive practices related to advertising in its search engine. The company has 60 days to defend itself, but Brussels has hinted at forced divestitures still on the table, sparking tensions with threats of commercial retaliation.
A Future Under Close Watch
Despite the tense climate, analysts remain optimistic. Citi has raised its price target from $225 to $280, believing that increased clarity on the regulatory front reduces some risk. However, the legal battle is far from over, with the second phase of the US online advertising trial set to commence in Virginia.
Google was showing a new uptick of 1% to surpass $254 in pre-market trading.
For the markets, one thing is clear: even under the threat of record fines and repeated lawsuits, Alphabet continues to make history. With over $3 trillion in market capitalization, Google proves to be a cornerstone of the global tech industry, an actor that neither justice nor regulation have managed to restrain.
