Valued at $2.4 trillion by market cap, Alphabet Inc. (GOOG) is a global leader in technology and innovation. Headquartered in Mountain View, California, the company specializes in various services, including digital advertising, cloud computing, artificial intelligence, and consumer electronics. Through its subsidiaries, including Google, YouTube, and Waymo, Alphabet continues to drive advancements that shape the future of technology and digital experiences worldwide.
Companies with a market value of $200 billion or more are classified as "mega-cap stocks," Alphabet is a prominent member of this group. GOOG’s strong market position and commitment to innovation across various technology sectors, including digital advertising, cloud computing, and artificial intelligence, solidify its role as a leader in the global tech ecosystem.
Shares of the Google parent are currently trading 5% below their 52-week high of $202.88, reached on Dec. 17. Over the last three months, the stock has climbed 15.3%, significantly outperforming the S&P 500 Index's ($SPX) 2.5% gain during the same period.
Over the past six months, GOOG has risen by 5.1%, trailing behind the SPX's 8.2% return. However, over the past year, GOOG delivered a strong 36.7% gain, outpacing SPX's notable 23.8% growth during the same period.
The stock has consistently traded above its 50-day moving average since late November and its 200-day moving average since mid-September, indicating a sustained bullish trend.
Alphabet shares rose 4.4% on Dec.10 after the company unveiled its Willow quantum computing chip, claiming it can solve complex computations in minutes that would take current supercomputers 10 septillion years.
Alphabet has outperformed the broader index, driven by strong revenue growth and solid results across its core businesses, including Search, YouTube advertising, and cloud services. On Oct. 29, the stock closed over 1% higher after reporting impressive Q3 earnings. The company posted $88.3 billion in revenue, a 15.1% year-over-year increase, with earnings per share rising 36.8% to $2.12. Google Services revenue climbed 13% to $76.5 billion.
GOOG's competitor, Apple Inc. (AAPL), has underperformed in comparison. AAPL stock has gained 31% over the past 52 weeks.
GOOG's strong performance compared to the broader sector has analysts maintaining a positive outlook. Among the 50 analysts covering the stock, the consensus rating is "Strong Buy." Moreover, it has a mean price target of $211.55, suggesting a potential upside of 9.8% from its current level.
