Tech giant Google (GOOGL) just had a massive month, with the stock rising nearly 34% in April, its best performance since 2004. As tech stocks led the rally, Google alone added about $1.2 trillion in value in just one month, which is more than 50 times what the company was worth when it first went public. What makes this even more interesting is how different Google’s path has been compared to most IPOs.
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New trading tool for AMZN bullsAccording to Kathy Donnelly, co-author of The Lifecycle Trade, about 91% of IPOs eventually fall below their first-day low, which usually leads early investors to lose money as companies go through a major reset. However, Google never really went through that phase. After its IPO in August 2004 at around a $23 billion valuation, the company kept growing without a major reset and is now valued at roughly $4.65 trillion.
Google was also one of the first major companies to recover, along with Amazon (AMZN) and Nvidia (NVDA), after stocks pulled back due to geopolitical tensions. As a result, Google is now the top performer among the Magnificent Seven this year, up about 22%, and has already hit multiple record highs. The next question is whether it can keep that lead going forward.
Are GOOGL Shares a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 28 Buys and five Holds assigned in the past three months. Furthermore, the average GOOGL price target of $413.06 per share implies 7.2% upside potential.
