Investors who had been content to play the waiting game as the courtroom drama surrounding Alphabet (NASDAQ:GOOGL) played out seem to be coming back to the flock.
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Indeed, ever since U.S. District Judge Amit Mehta issued a ruling in early September that would allow Alphabet to keep its Chrome web browser (among other matters), GOOGL’s share price has risen close to 20%.
It certainly appears that Alphabet is emerging from its scuffle with the U.S. Department of Justice hale and hearty, with fears of any forced structural changes falling by the wayside.
The company’s total market cap has now crested beyond the $3 trillion mark, and it joins Nvidia, Microsoft, and Apple as the only firms to reach this highest of echelons.
However, after the recent run, is there more room up ahead for further gains? Investor Anthony Di Pizio is pretty confident that there is.
“Its stock is in the neighborhood of a record high right now, but its attractive valuation suggests more upside could be on the way,” explains the investor.
Di Pizio further details that there are numerous reasons to be bullish about the company’s prospects. This includes Alphabet’s accelerating revenues from Google Search, which grew by 11.7% in Q2 2025 – even better than its 9.8% rate in Q1 2025.
This should alleviate concerns regarding the challenge posed by AI chatbots to Alphabet’s search revenues, while also demonstrating that its AI-enhanced search feature – AI Overviews – “is having the desired effect.”
Though Di Pizio notes that Google Search is likely to account for more than half of Alphabet’s revenues, Google Cloud is growing at an even faster clip. In fact, this segment’s $13.6 billion in revenues represented a 32% year-over-year growth rate. With a $106 billion order backlog, the investor believes that additional growth is simply a foregone conclusion.
And yet, despite the promising developments and surging share price, GOOGL remains reasonably valued, argues Di Pizio. The investor cites its Price-to-Earnings ratio of 26.8x, which is the lowest of all of its Magnificent 7 peers.
“For that reason, I think Alphabet stock still has plenty of room to run,” sums up Di Pizio. (To watch Anthony Di Pizio’s track record, click here)
That seems to track with much of Wall Street’s views as well. GOOGL boasts 28 Buys, 9 Holds, and not a single Sell, giving it a Strong Buy consensus rating. Its 12-month average price target of $235.97 points to a slight decrease going forward, indicating that most of these bulls didn’t expect its share price to jump up this high this quickly. (See GOOGL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.