How Alphabet Stock Climbed 34% in 3 Months?

From quantitative point of view, The 34.2% change in Alphabet (GOOGL) stock from 7/11/2025 to 10/9/2025 was primarily driven by a 28.2% change in the company’s P/E Multiple. There is more to this story than just numbers, but first, let’s break down the stock price movement into its contributing factors.

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Coming back to the “change”: The change in fundamental factors such as valuation, revenue and margins, has an underlying business and investor sentiment story behind it. Below, we have identified key developments that influenced stock price movement for GOOGL stock. Before that, as a quick background: GOOGL provides diverse products and services including ads, Android, Chrome, hardware, cloud solutions, health technology, and internet services across various segments.

Here Is Why Alphabet Stock Moved

• Alphabet reported strong second quarter 2025 financial results on July 23, 2025, with consolidated revenue increasing 14% year-over-year to $96.4 billion and earnings per share rising 22% to $2.31, both exceeding analyst forecasts. Google Cloud was a significant driver, with revenue increasing 32%, propelled by AI infrastructure and generative AI solutions. However, the stock saw an immediate dip due to investor concerns over increased capital expenditures, projected at $85 billion for 2025 primarily for AI infrastructure, and warnings about potential Q3 margin pressures from these expenses.
• The stock experienced a significant rally in the third quarter of 2025, with a 14% surge in September, primarily driven by continued enthusiasm around artificial intelligence. A favorable ruling in the Google Search antitrust case, which did not require Alphabet to divest Chrome or Android, also provided a boost to investor confidence.
• Despite the strong performance, the stock’s movement was also influenced by ongoing regulatory scrutiny and increased market competition, particularly in the AI sector, leading to some dips in September 2025. Analysts maintain a “Moderate Buy” consensus rating, with continued growth expected from Google Cloud and core businesses.
• Alphabet continued its strategic investments, increasing its capital expenditure guidance for 2025 to $85 billion to meet growing cloud and AI demand. The company also began distributing cash dividends to shareholders, paying a quarterly dividend of $0.21.
• There were notable insider stock sales during this period, including transactions by CEO Sundar Pichai and Director Frances Arnold in late September and early October 2025. For the upcoming third quarter 2025 earnings, analysts projected earnings per share of $2.29 to $2.30 and revenue around $84.56 billion, with a conference call scheduled for October 29, 2025.

Our Current Assesment Of GOOGL Stock

Opinion: We currently find GOOGL stock relatively expensive. Why so? Have a look at the full story. Read Buy or Sell GOOGL Stock to see what drives our current opinion.

Risk: That said, GOOGL isn’t immune to big drops. It fell 65% in the Global Financial Crisis, lost about 44% in the inflation shock, and saw pullbacks near 31% during the Covid pandemic. Even the milder corrections, like 2018, led to a dip of around 23%. Strong fundamentals matter, but when volatility hits, even top stocks take a hit.

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