Alphabet’s stock reached its highest price ever, $159.89 per share, and closed at $158.14. It gained 1.3%, even though the overall market was down a bit.
This pushed Alphabet’s total value in the stock market to $1.95 trillion, getting very close to reaching $2 trillion. Only a few other big tech companies like Apple, Microsoft, and Nvidia, along with Saudi Aramco, have ever hit that milestone.
Alphabet’s stock has been going up a lot lately. It’s gone up by 13% this year and a huge 77% since the end of 2022. This is because the company has been making a lot of money from advertising, and investors think it will make even more money in the future, especially from artificial intelligence (AI).
Most experts think Alphabet will definitely reach $2 trillion. They predict Alphabet’s stock will keep going up, with an average target price of $166 per share.
One analyst, Jason Helfstein, is very optimistic about Alphabet’s future. He thinks Alphabet’s stock could reach $185 per share, which would make the company worth $2.3 trillion. He believes Google’s AI technology will play a big role in this success.
Big Number
Over the past ten years, Google shares have yielded a 19% annualized return on investment, surpassing the S&P 500’s 13%. However, they fall behind other American companies valued at over $1 trillion, such as Amazon, Apple, Microsoft, Meta, and Nvidia, which have achieved annualized returns of more than 20%.
Key Background
The performance of Alphabet’s stock, while impressive, has been somewhat overshadowed by its peers. This is evident in the market’s inconsistent response to its AI products. However, sentiment has been more positive lately, especially as Google establishes itself as a leader in generative AI. There are reports indicating that the company is considering charging for AI-powered search services.
Despite experiencing a nearly 40% drop in its share price in 2022, Alphabet’s business rebounded well. This recovery was supported by stable advertising spending, particularly as the U.S. managed to avoid a feared recession. Advertising contributes to more than three-fourths of Google’s total revenue.
What to Watch For
Later this month, Alphabet is scheduled to announce its first-quarter earnings. According to average analyst forecasts, the company is expected to unveil a record-breaking Q1 profit of close to $19 billion.
