As 2025 draws to a close and investors take stock of the year that was, there are arguably few companies that embody the shifting market sentiment as much as Alphabet (NASDAQ:GOOGL).
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Indeed, the winter months were full of tension and worry, especially as the newly arrived Trump administration threatened tariffs and other disruptions. But, then, in April, the winds began changing, and tech companies were some of the big beneficiaries. GOOGL, for instance, is up almost 80% during the past half-year.
But while its share price rode along with the twists and turns, underneath it all Alphabet was churning out record revenues. The company recently breached the $100 billion mark during Q3 2025, and its AI prowess is winning plaudits from analysts and users alike.
Top investor Keithen Drury points out that three big issues dogging GOOGL just one year ago are now in the Internet giant’s rearview mirror, setting the company up quite nicely to charge into 2026.
“After all of the questions surrounding Alphabet’s stock disappeared, the market is free to value Alphabet’s stock like the dominant business it is,” explains the 5-star investor, who is among the top 3% of stock pros covered by TipRanks.
Drury lists the worries that he believes were dragging down GOOGL at the onset of 2025: the potential erosion of Google Search engine dominance, its perceived lagging in the AI race, and even a looming court case that was threatening to break up Alphabet into separate pieces.
“All three of these questions were answered in 2025, and all of them were positive,” adds Drury.
He further notes that the resolution of each of these worries provided tailwinds for the company and its share price in 2025. And Drury expects the good times to continue in the year ahead.
The investor cites the company’s strong revenue in Q3, as its Google Search and Other ad revenues grew by 15% on a year-over-year basis. Moreover, Drury points out that the company’s cloud computing business is “thriving,” with revenues in this segment growing by an even faster rate of 34% year-over-year in Q3.
“Alphabet is going to be a successful company in 2026, and its recent track record tells me that it’s a great stock to own,” concludes Drury. (To watch Drury’s track record, click here)
That’s right where most of Wall Street finds itself as the new year dawns. With 27 Buys and 7 Holds, GOOGL enjoys a Strong Buy consensus rating. However, its 12-month average price target of $327.42 points to minimal movement in the year ahead. (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.