Alphabet Stock Rises Nearly 70% in 2025 Amid AI Concerns

Written by Emily J. Thompson, Senior Investment Analyst

GOOGL+1.75%

MELI-0.43%

RKLB-1.69%

Source: Fool

Updated: 1d ago

0mins

Source: Fool

Stock Performance: Alphabet's stock surged nearly 70% in 2025, making it the best performer among the MAG 7, demonstrating its strong competitive position in autonomous and streaming sectors despite threats from AI innovations like OpenAI.
Leadership in AI: With the success of Gemini, Alphabet's leadership in the AI space is increasingly solidified, and while challenges remain in its search business, its strategic responses have instilled positive confidence among shareholders.
Rocket Lab CEO Recognition: Rocket Lab's CEO, Sir Peter Beck, is recognized as the top CEO of the year, with the company's stock doubling in 2025, reflecting his commitment to a long-term vision that has attracted investor interest.
Mercado Libre Growth Potential: Mercado Libre excels in the e-commerce and fintech sectors in Latin America, achieving over 30% year-over-year revenue growth for 27 consecutive quarters, showcasing its strong market expansion potential.

GOOGL

$319.83+Infinity%1D

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: 314.340

Low

236.00

Averages

312.00

High

350.00

Current: 314.340

Low

236.00

Averages

312.00

High

350.00

Canaccord

Maria Ripps

Buy

maintain

$330 -> $390

2026-01-07

New

Reason

Canaccord

Maria Ripps

Price Target

$330 -> $390

2026-01-07

New

maintain

Buy

Reason

Canaccord analyst Maria Ripps raised the firm's price target on Alphabet to $390 from $330 and keeps a Buy rating on the shares. The firm said said while they are more cautious in the near-term, in part due to the stock's recent run, they continue to have high conviction on the name longer-term. The Gemini chatbot continues to scale rapidly, with Similarweb data most recently finding Gemini's share of generative AI web traffic has grown to over 18%, and the recently launched Gemini 3 Flash model could be a gamechanger by making frontier-comparable performance available at an extremely attractive cost.

Jefferies

Brent Thill

Buy

maintain

$320 -> $365

2026-01-05

New

Reason

Jefferies

Brent Thill

Price Target

$320 -> $365

2026-01-05

New

maintain

Buy

Reason

Jefferies analyst Brent Thill raised the firm's price target on Alphabet to $365 from $320 and keeps a Buy rating on the shares. The firm believes 2026 will be "another year of gradual AI monetization," but thinks more meaningful growth contribution and acceleration are needed to ease AI disintermediation fears, requiring more selectivity, the analyst tells investors in an outlook note on the software group. "While we remain confident that value will ultimately accrue to the software layer, investors may need to stay patient" with sector valuation back at historical average, the analyst added.

Wolfe Research

Shweta Khajuria

Outperform

maintain

$350 -> $380

2026-01-05

New

Reason

Wolfe Research

Shweta Khajuria

Price Target

$350 -> $380

2026-01-05

New

maintain

Outperform

Reason

Wolfe Research analyst Shweta Khajuria raised the firm's price target on Alphabet to $380 from $350 and keeps an Outperform rating on the shares. 2026 could be another positive year for Internet stocks, though maybe not as much outperformance as the prior three years given current, elevated multiples for some of the firm's coverage, the analyst tells investors in a research note. The firm added that it sees opportunities for estimates upside driven by AI developments and product catalysts, a relatively healthy macro backdrop, successful capital allocation, and pockets of re-rating potential.

Citizens

Outperform

maintain

$340 -> $385

2025-12-31

Reason

Citizens

Price Target

$340 -> $385

2025-12-31

maintain

Outperform

Reason

Citizens raised the firm's price target on Alphabet (GOOGL) to $385 from $340 and keeps an Outperform rating on the shares. The firm reevaluated its estimates and Alphabet's valuation framework with the shares more than doubling off the May lows. It cites strength in the company's search business for the target boost. Google can further accelerate search revenue in Q4, which is the key question for shares near term, the analyst tells investors in a research note. Citizens views Gemini, cloud, Waymo, and tensor processing units as medium-term catalyst for Alphabet that should "help to inflect results" in 2026 and 2027.

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.