Alphabet Stock Surged 70%, Here’s Why
Alphabet (GOOGL)’s stock surged 65%, fueled by stronger earnings and a sharp margin lift, as investors cheered AI growth, cloud wins, and antitrust clarity. With a rising P/E and savvy shareholder moves, the stage is set for more exciting updates ahead.
| 10312024 | 10312025 | Change | |
|---|---|---|---|
| Stock Price ($) | 170.4 | 281.2 | 65.1% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 339,859.0 | 385,477.0 | 13.4% |
| Net Income Margin (%) | 27.7% | 32.2% | 16.2% |
| P/E Multiple | 22.2 | 27.4 | 23.2% |
| Shares Outstanding (Mil) | 12,290.0 | 12,086.0 | 1.7% |
| Cumulative Contribution | 65.0% |
So what is happening here? The stock price jumped 65%, driven by a 13% revenue increase, a 16% boost in net margin, and a 23% rise in P/E multiple. These shifts set the stage for key business updates ahead.
Before we get into details of events that led to stock surge, here is what market wisdom says: GOOGL stock may swing. A balanced allocation doesn’t. Trefis’ Boston-based, wealth management partner blends strategy and discipline to smooth out market noise.
Here Is Why Alphabet Stock Moved
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- Strong Quarterly Earn: Consistently beat revenue/EPS estimates, demonstrating robust growth across all segments.
- AI Invest & Growth: Heavy CapEx in AI infra, strong AI-driven Cloud growth & Gemini adoption.
- Google Cloud Success: Cloud revenue grew double-digits with increasing profitability and backlog.
- Antitrust Resolution: Judge’s ruling in Sept 2025 avoided Google breakup, calming investor fears.
- Shareholder Returns: Increased quarterly cash dividend by 5% in Q1 2025 and stock buyback program.
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: A good way to understand GOOGL’s risk is by checking its drawdowns during major market shocks. It fell about 65% in the Global Financial Crisis, 44% during the Inflation Shock, and over 30% in the Covid sell-off. Even the 2018 correction wasn’t kind, with a dip of around 23%. So, while GOOGL looks solid on paper, history shows it’s not immune when markets turn south.
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