Alphabet (GOOGL) has officially crossed the $3 trillion market capitalization mark. The tech giant becomes the fourth company to reach the milestone alongside Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA). GOOGL stock climbed over 4% on Monday, fueled by investor optimism over a favorable antitrust ruling and strong momentum in its AI and cloud businesses.
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Alphabet stock is now up more than 31% this year, significantly outperforming the Nasdaq’s (NDX) 15% gain. Importantly, the milestone comes over 20 years after Google’s IPO and a decade after the creation of Alphabet as a holding company.
Under the leadership of CEO Sundar Pichai, who succeeded co-founder Larry Page in 2019, Alphabet has sailed through intense global regulatory scrutiny, rising AI competition, and shifting digital ad markets.
Key Market Cap Driving Factors
A key factor in this recent rally was a U.S. federal judge’s ruling that allowed Alphabet to maintain control of its popular Chrome browser and Android mobile operating system. This decision is a major win for the company, which has faced intense scrutiny over its market dominance in search and mobile ecosystems.
This legal clarity followed a strong second-quarter earnings report, which highlighted that growing demand for its AI products is driving sales.
Importantly, Google’s cloud computing unit reported a nearly 32% jump in Q2 revenue, beating estimates. This growth suggests that the company’s investments in developing its own chips and the advanced Gemini AI model are starting to yield returns.
Citi Analyst Ups Price Target on GOOGL Stock
Echoing this positive sentiment, Citigroup analyst Ronald Josey raised his price target for the stock to $280 from $225, while maintaining a Buy rating.
Josey believes Alphabet can launch new products faster now that regulatory concerns are easing. Also, he expects strong growth in both advertising and cloud services as its Gemini AI tools gain traction.
What Is the Target Price for Google Stock?
On TipRanks, GOOGL stock has received a Strong Buy consensus rating, with 29 Buys and nine Holds assigned in the last three months. The average Alphabet stock price target is $236.85, suggesting a downside risk of 4.77% from the current level.
