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NEW YORK, NEW YORK - JANUARY 09: The exterior of the new headquarters of Google is seen at 550 Washington Street in Hudson Square on January 09, 2024 in New York City. Designed by COOKFOX Architects, the 1.3-million-square-foot project involved the restoration and expansion of the St. John’s Terminal building along the Hudson River waterfront. (Photo by Michael M. Santiago/Getty Images) Getty Images Alphabet (GOOGL)’s stock increased by 65%, in the past year, driven by robust earnings and a sharp margin enhancement, as investors welcomed AI advancement, cloud victories, and clearer antitrust regulations. With a rising P/E ratio and intelligent shareholder initiatives, the groundwork is laid for more thrilling developments ahead. What is occurring in this situation? The stock price climbed 65%, propelled by a 13% revenue growth, a 16% increase in net margin, and a 23% rise in the P/E ratio. These changes prepare the groundwork for significant business developments in the future. Before diving into details of events that led to the stock increase, consider what market wisdom indicates: GOOGL stock may experience volatility. A diversified allocation doesn’t. Trefis’ Boston-based wealth management partner combines strategy and discipline to mitigate market noise. Here Is Why Alphabet Stock Moved Strong Quarterly Earnings: Consistently exceeded revenue and EPS forecasts, showcasing strong growth across all areas. AI Investment & Growth: Significant CapEx in AI infrastructure, robust AI-driven Cloud growth & Gemini adoption. Google Cloud Success: Cloud revenue experienced double-digit growth with increasing profitability and backlog. Antitrust Resolution: A judge's ruling in September 2025 prevented the breakup of Google, alleviating investor concerns. Shareholder Returns: Raised the quarterly cash dividend by 5% in Q1 2025 along with a stock buyback program. Our Current Assessment Of GOOGL Stock MORE FOR YOU Opinion: We currently perceive GOOGL stock as relatively overvalued. Why? Have a look at the full story. Read Buy or Sell GOOGL Stock to understand what influences our current view. Risk: A helpful way to gauge GOOGL’s risk is by examining its drawdowns during significant market shocks. It dropped approximately 65% during the Global Financial Crisis, 44% during the Inflation Shock, and over 30% in the Covid sell-off. Even the correction in 2018 was not favorable, with a decline of about 23%. Therefore, while GOOGL appears solid on paper, history shows it can be vulnerable when markets decline. Consistently identifying winners is a challenging endeavor - particularly considering the volatility associated with individual stocks. Instead, the Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, has a history of comfortably outperforming the S&P 500 over the past four-year period. What accounts for this? As a group, HQ Portfolio stocks have yielded superior returns with lower risk compared to the benchmark index; offering a steadier ride, as evident in HQ Portfolio performance metrics. Editorial StandardsReprints & Permissions
