US Stocks Rise 40% Despite Tariff Shock in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 05 2026
0mins
Source: Fool
- Tariff Impact: In April 2025, sweeping tariffs were imposed on all imports to the US, leading to a surprising 40% rise in the S&P 500, yet underlying economic pressures indicate that the long-term effects of these tariffs are yet to be fully realized.
- Market vs. Economy Disconnect: Despite the stock market's gains, Main Street has not seen improvements, with data suggesting potential job losses of 20,000 per month since April, highlighting a growing divide between market performance and everyday American life.
- AI and Advertising Market: Google's Gemini has surpassed OpenAI in several benchmarks, with its stock rising 60%, yet its heavy reliance on advertising revenue poses risks of future income loss, illustrating the complexities of AI competition.
- Gold's Strong Performance: Gold outperformed the S&P 500 by approximately 4x in 2025, reflecting a rising demand for safe-haven assets amid a depreciating dollar, indicating market concerns over future economic uncertainties.
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: 335.840
Low
236.00
Averages
312.00
High
350.00
Current: 335.840
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.
