Alphabet (GOOGL) Stock: Soars Past $3 Trillion Market Cap as Court Victory Fuels Rally

TLDR

Table of Contents

Alphabet reached a $3 trillion market cap for the first time, joining Apple and Microsoft in this exclusive club
Stock surged 32% year-to-date, driven by AI momentum and cloud growth up nearly 32% in Q2
U.S. court ruling allowed Alphabet to keep Chrome browser and Android ecosystem, removing major investor concerns
Shares closed at $251.76 on September 15, up 4.3%, with pre-market trading showing further gains to $254.11
Company trades at 23x forward earnings, the lowest valuation among Big Tech peers despite record highs

Alphabet Inc. closed at $251.76 on September 15, 2025, gaining 4.3% and pushing its market capitalization above $3 trillion for the first time. The company joins Apple and Microsoft as the third U.S. corporation to reach this milestone.

Shares extended gains in pre-market trading to $254.11, adding another 0.93%. Both Class A and Class C shares hit record all-time highs during Monday’s trading session.

The stock has delivered a 32% return year-to-date, crushing the S&P 500’s 12.5% gain. This performance stems from strong artificial intelligence growth and favorable regulatory developments.

🚨BREAKING: ALPHABET HITS $3 TRILLION
Now the 4th company in history to reach this milestone, joining Apple, Microsoft & Nvidia.
Big Tech’s trillion-dollar club just got even stronger🔥 pic.twitter.com/TREC6WvNnw
— cryptothedoggy (@cryptothedoggy) September 15, 2025

Alphabet’s surge reflects broader optimism around AI technology stocks. The sector has lifted Wall Street indices to record levels on hopes of Federal Reserve rate cuts.

Oracle’s strong AI forecast and Nvidia’s $4.25 trillion market cap have added fuel to tech sector momentum. Alphabet stands out as one of the strongest performers in the “Magnificent 7” group of mega-cap stocks.

AI Revolution Drives Growth

The company’s Gemini AI model and in-house chip investments are paying off. Cloud unit revenue jumped nearly 32% in the second quarter, demonstrating the commercial impact of AI initiatives.

Investors are betting heavily on Alphabet’s AI expansion plans. The technology is becoming central to the company’s growth strategy across multiple business segments.

Wall Street sees AI as a key differentiator for Alphabet going forward. The company’s investments in this area are viewed as positioning it well for long-term competition.

Court Victory Removes Regulatory Risk

A U.S. court ruling earlier this month allowed Alphabet to retain its Chrome browser and Android ecosystem. While the company must share some data with rivals, it avoided forced divestiture of these critical assets.

These platforms form the backbone of Alphabet’s advertising and mobile dominance. Their retention removes a major overhang that had concerned shareholders for months.

The ruling provides clarity on regulatory risks that had weighed on the stock. Investors now have more confidence in the company’s ability to maintain its core business model.

The decision validates Alphabet’s legal strategy in fighting antitrust challenges. Management can now focus on growth initiatives rather than defensive measures.

Alphabet’s business model continues evolving beyond traditional search advertising. YouTube, Waymo, and cloud services represent growing revenue streams that diversify the company’s income sources.

The company trades at 23x forward earnings, slightly above its five-year average of 22. However, this represents the lowest valuation among Big Tech peers despite the recent rally.

Zacks Research expects earnings per share of $2.33 for the current quarter, up 9.9% year-over-year. Full-year EPS forecasts call for $9.99, representing 24.3% growth from 2024.

Looking ahead to 2026, analysts project EPS growth of 6.1%. The Zacks Rank assigns Alphabet a #3 (Hold) rating based on stable earnings revisions.

Over the past month, the stock has gained 17.8%, outperforming both the S&P 500 and industry peers. The one-year return stands at 59.7%, with three-year gains of 144% and five-year returns of 229%.

By comparison, the S&P 500 has delivered 17.6%, 69.6%, and 94.5% returns over the same time periods. Alphabet’s outperformance reflects investor confidence in its growth trajectory and competitive positioning.

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