Alphabet Stock Surged 80%, Here’s Why
Alphabet (GOOGL) stock surged 85%, powered by soaring revenue, expanding margins, and a booming P/E. Behind the scenes: stellar 2025 earnings, AI innovation with Gemini 3, robust Google Cloud growth, and bold AI investments all boosting investor confidence. Let’s unpack the momentum.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 12022024 | 12022025 | Change | |
|---|---|---|---|
| Stock Price ($) | 170.7 | 315.8 | 85.0% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 339,859.0 | 385,477.0 | 13.4% |
| Net Income Margin (%) | 27.7% | 32.2% | 16.2% |
| P/E Multiple | 22.3 | 30.7 | 38.0% |
| Shares Outstanding (Mil) | 12,290.0 | 12,086.0 | 1.7% |
| Cumulative Contribution | 84.9% |
So what is happening here? The stock jumped 85%, driven by a 13% boost in revenue, a 16% rise in net margin, and a 38% expansion in the P/E multiple. Let’s see what fueled these shifts next.
Here Is Why Alphabet Stock Moved
- What Could Spark the Next Big Move In Apple Stock
- BWX Technologies Stock May Still Have Room to Run
- Intuitive Surgical Stock Now 12% Cheaper, Time To Buy
- Caterpillar Stock Capital Return Hits $57 Bil
- Accenture Stock Shares $58 Bil Success With Investors
- NVIDIA Stock Pays Out $83 Bil – Investors Take Note
- Strong Earnings 2025: Alphabet reported double-digit revenue and EPS growth across Q1, Q2, and Q3 2025.
- AI Leadership (Gemini 3): Gemini 3 AI model launched in Nov 2025, praised for capabilities, boosting AI leadership.
- Google Cloud Growth: Google Cloud delivered consistent double-digit revenue growth and improved margins due to AI demand.
- Increased AI Investment: Increased 2025 AI infrastructure capital expenditures (up to $93B) demonstrated AI commitment.
- Shareholder Returns: Q1 2025 saw a $70B stock buyback and a 5% dividend increase, signaling investor value.
Our Current Assesment Of GOOGL Stock
Opinion: We currently find GOOGL stock fairly priced. 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.
GOOGL 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.