What Is Happening With Alphabet Stock?
Alphabet (GOOG)’s stock rocketed 77%, fueled not just by modest gains in revenue and margins but a surge in investor optimism. Behind the scenes: a strong earnings beat, AI breakthroughs, a key antitrust win, booming cloud demand, and heavyweight Berkshire Hathaway stepping in. What’s next?
Below is an analytical breakdown of stock movement into key contributing metrics.
| 8012025 | 1282026 | Change | |
|---|---|---|---|
| Stock Price ($) | 189.7 | 336.3 | 77.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 371,399.0 | 385,477.0 | 3.8% |
| Net Income Margin (%) | 31.1% | 32.2% | 3.6% |
| P/E Multiple | 19.9 | 32.7 | 64.4% |
| Shares Outstanding (Mil) | 12,122.0 | 12,086.0 | 0.3% |
| Cumulative Contribution | 77.3% |
So what is happening here? The stock surged 77%, driven mainly by a 64% jump in its P/E multiple, while revenue and net margin edged up 3.8% and 3.6%, respectively. Let’s now see what’s behind these shifts.
Here Is Why Alphabet Stock Moved
- Q3 2025 Earnings Beat: Alphabet beat Q3 2025 EPS and revenue estimates, contributing to strong October stock performance.
- AI Advancements: Strong optimism for AI, Gemini 3 release, and Google’s TPUs challenged Nvidia in Nov 2025.
- Antitrust Ruling Win: Court ruled Alphabet wouldn’t sell Chrome. Stock soared 9% on Sept 3, 2025.
- Cloud Growth & Backlog: Google Cloud growth accelerated; $155B backlog from AI infrastructure, incl. Meta deal.
- Berkshire Invests: Berkshire Hathaway disclosed new Alphabet stake (approx $4.3B) in Q3 2025 filings.
Our Current Assesment Of GOOG Stock
Opinion: We currently find GOOG stock relatively expensive. Why so? Have a look at the full story. Read Buy or Sell GOOG Stock to see what drives our current opinion.
Risk: To get a sense of risk, check how much GOOG fell in past market sell-offs. It dipped about 23% in the 2018 correction, nearly 31% during the Covid pandemic, and a sharp 45% in the inflation shock. These aren’t small moves. Despite its strong fundamentals, GOOG isn’t immune when the broader market dives. Even during less severe downturns, the stock still goes through significant drops. So, owning GOOG means accepting some big swings during tough times.
GOOG stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.