US Stocks Rise 40% Despite Tariff Shock in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 05 2026
0mins
Should l Buy GOOGL?
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.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 309.000
Low
305.00
Averages
374.25
High
400.00
Current: 309.000
Low
305.00
Averages
374.25
High
400.00
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.
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See More
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- Quantum Market Potential: Analysts from Boston Consulting Group estimate that the global opportunity for quantum computing could reach between $450 billion and $850 billion by 2040, indicating significant investor interest despite the market being in its infancy.
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See More
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- Diversified Factory Investments: Among the six new factories, three are dedicated to electric vehicle production, including a lithium refinery and a low-cost lithium iron phosphate battery factory, directly supporting EV growth and strengthening Tesla's market position.
- Autonomous Driving Vision: CEO Elon Musk clearly stated in the recent earnings call that only 1% to 5% of miles driven will be by humans in the future, indicating Tesla's leadership in autonomous driving, with expectations that Cybercab production will surpass all other models combined.
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See More
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- Future Growth Expectations: Management forecasts first-quarter revenue of $35.2 billion, representing a 38% year-over-year growth, suggesting that the company will continue to thrive amid rising demand for high-end semiconductors.
- Optimistic Industry Outlook: Annual sales of high-end semiconductors are projected to approach $1 trillion by 2026, positioning TSMC to benefit from this trend, with analysts predicting revenues of $193.9 billion and $232.8 billion in 2027 and 2028, respectively.
See More
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See More
