Alphabet Poised to Surpass $4 Trillion Market Cap, Fueled by AI Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15h ago
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Source: Fool
- Market Cap Milestone: Alphabet's current market cap stands at $3.77 trillion, requiring just a 6.1% increase to surpass the $4 trillion mark, which is anticipated to occur within 2025, highlighting the company's robust market performance and growth potential.
- Significant Revenue Growth: In Q3 2025, Alphabet achieved its first-ever quarterly revenue of $100 billion, marking a 16% year-over-year increase, with 72% of this revenue stemming from its powerful advertising engine, indicating the resilience of its core business.
- Substantial Net Income Increase: For the first three quarters of 2025, Alphabet reported a net income of $97.71 billion, a 32% increase from the same period last year, reflecting enhanced profitability and providing financial support for future investments and expansions.
- AI-Driven Search Growth: By integrating AI features into its search engine, Alphabet has improved user experience, with the CEO stating that AI is driving an expansionary moment for Search, further solidifying its dominant position in the internet search market with a share of 90.83%.
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOGL is 312.00 USD with a low forecast of 236.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
38 Analyst Rating
31 Buy
7 Hold
0 Sell
Strong Buy
Current: 325.440
Low
236.00
Averages
312.00
High
350.00
Current: 325.440
Low
236.00
Averages
312.00
High
350.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
