"Alphabet, the parent company of Google, has become only the fourth company in history to reach a $3 trillion market valuation, as investor enthusiasm over artificial intelligence and relief from a favourable US antitrust ruling drove shares to record highs. Shares in the California-based group climbed more than 4 per cent on Monday, pushing its market cap to $3.04 trillion. The stock has risen 31 per cent so far this year, buoyed by strong earnings, rapid AI adoption, and a landmark legal reprieve earlier this month."
"Alphabet's latest rally followed a September ruling in Washington that eased fears of a forced break-up. A judge rejected US Department of Justice calls for Google to divest its Chrome browser and Android mobile operating system, after a 2023 decision found the company had created an illegal monopoly in search. Shares surged to record highs on the day, with President Trump personally congratulating Alphabet chief executive Sundar Pichai at a White House dinner: "Well you had a very good day yesterday. Google had a very good day yesterday.""
Alphabet reached a $3.04 trillion market valuation after shares climbed on investor enthusiasm for artificial intelligence, strong earnings, and a favourable US court decision that reduced break-up risk. The stock rose 31% year-to-date on robust second-quarter results, including $96 billion in revenue, a 12% rise in Google search services to $54.2 billion, higher-than-expected YouTube ad sales, and cloud revenue growing nearly a third to $13.6 billion. Regulatory pressure persists, with a nearly €3 billion EU fine over advertising technology, but AI adoption and diversified revenue streams sustained the market rally.
Read at Business Matters
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