Alphabet Stock Rises Nearly 70% in 2025 Amid AI Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
0mins
Should l Buy GOOGL?
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.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOGL is 338.25 USD with a low forecast of 279.00 USD and a high forecast of 390.00 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.
34 Analyst Rating
27 Buy
7 Hold
0 Sell
Strong Buy
Current: 331.250
Low
279.00
Averages
338.25
High
390.00
Current: 331.250
Low
279.00
Averages
338.25
High
390.00
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.
Analysis of Peter Thiel's Investment Portfolio
- Tesla Position Change: Peter Thiel reduced his Tesla holdings by 76% in Q3 2025, yet it remains the largest position in his portfolio, indicating ongoing confidence in the electric vehicle market despite skepticism towards Musk's humanoid robot strategy.
- Microsoft Investment Increase: Thiel purchased 49,000 shares of Microsoft in Q3, elevating it to the second-largest holding at 34% of his total portfolio, reflecting his optimism about Microsoft's cloud services and AI integration, even as the company faces growth slowdowns.
- New Investment in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, suggesting he sees potential in Apple's AI capabilities, particularly its vast iPhone sales network and upcoming AI-powered smart glasses.
- AI Stock Selection: Although Thiel's hedge fund holds only three AI stocks, his choices of Microsoft and Apple demonstrate a preference for technology builders, indicating a belief that these companies will play a more significant role in future technological revolutions.
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Amazon's Stock Decline Reflects Market Overreaction
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- Capital Expenditure Forecast: Amazon's projected capital expenditures for 2026 are set at $200 billion, a significant increase from $132 billion in 2025; although this raised market concerns, CEO Andy Jassy emphasized that most of the spending will address high demand for AWS services.
- AWS Growth Momentum: AWS experienced a 24% year-over-year revenue increase in Q4, reaching an annualized revenue run rate of $142 billion, with a backlog of $244 billion, reflecting robust growth in the cloud services market and a 40% increase in backlog year-over-year.
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- Tesla Stake Reduction: Thiel slashed his Tesla holdings by 76% in Q3 2025, although it remains his largest position, indicating a cautious stance towards the electric vehicle market, possibly due to skepticism about Musk's humanoid robot strategy.
- Increased Microsoft Investment: Thiel purchased 49,000 shares of Microsoft in Q3, elevating its share to 34% of his hedge fund, reflecting his endorsement of Microsoft's focus on AI-integrated products, despite lower-than-expected growth in its cloud services.
- New Position in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, signaling confidence in Apple's AI potential, particularly its vast iPhone user base and upcoming AI-powered smart glasses.
- AI Investment Portfolio Analysis: Although Thiel's hedge fund does not hold Nvidia or Palantir, his investments in Microsoft and Apple demonstrate a preference for
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- Capital Expenditure Forecast: Amazon's projected capital expenditures for 2026 are set at $200 billion, a significant increase from $132 billion in 2025, which caused negative investor sentiment despite most spending being directed towards the high-demand AWS business.
- AWS Growth Momentum: AWS revenue surged 24% year-over-year in Q4, reaching an annualized revenue run rate of $142 billion, showcasing robust market demand and ongoing growth potential, particularly in AI workloads.
- Advertising Revenue Growth: Amazon's advertising revenue increased by 22% year-over-year in Q4 to $21.3 billion, with sponsored product ads and Prime Video ads significantly contributing to revenue growth, further solidifying its position in the advertising market.
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- Tesla Position Change: Peter Thiel reduced his Tesla holdings by 76% in Q3 2025, yet it remains the largest position in his portfolio, indicating ongoing confidence in the electric vehicle market despite skepticism towards Musk's humanoid robot strategy.
- Microsoft Investment Increase: Thiel purchased 49,000 shares of Microsoft in Q3, elevating it to the second-largest holding at 34% of his total portfolio, reflecting his optimism about Microsoft's cloud services and AI integration, even as the company faces growth slowdowns.
- New Investment in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, suggesting he sees potential in Apple's AI capabilities, particularly its vast iPhone sales network and upcoming AI-powered smart glasses.
- AI Stock Selection: Although Thiel's hedge fund holds only three AI stocks, his choices of Microsoft and Apple demonstrate a preference for technology builders, indicating a belief that these companies will play a more significant role in future technological revolutions.
See More
Amazon's Stock Decline Reflects Market Overreaction
- Earnings Performance: Amazon reported Q4 earnings per share (EPS) of $1.95, slightly below the $1.97 expected by analysts, while its revenue of $213.4 billion exceeded the $211.3 billion forecast, indicating strong revenue performance despite the earnings miss.
- Capital Expenditure Forecast: Amazon's projected capital expenditures for 2026 are set at $200 billion, a significant increase from $132 billion in 2025; although this raised market concerns, CEO Andy Jassy emphasized that most of the spending will address high demand for AWS services.
- AWS Growth Momentum: AWS experienced a 24% year-over-year revenue increase in Q4, reaching an annualized revenue run rate of $142 billion, with a backlog of $244 billion, reflecting robust growth in the cloud services market and a 40% increase in backlog year-over-year.
- Advertising Revenue Surge: Amazon's advertising revenue rose 22% year-over-year to $21.3 billion in Q4, with significant contributions from sponsored product ads and Prime Video ads, further solidifying its competitive edge in the e-commerce sector.
See More
Thiel Reduces Tesla Stake, Increases Microsoft and Apple Holdings
- Tesla Stake Reduction: Thiel slashed his Tesla holdings by 76% in Q3 2025, although it remains his largest position, indicating a cautious stance towards the electric vehicle market, possibly due to skepticism about Musk's humanoid robot strategy.
- Increased Microsoft Investment: Thiel purchased 49,000 shares of Microsoft in Q3, elevating its share to 34% of his hedge fund, reflecting his endorsement of Microsoft's focus on AI-integrated products, despite lower-than-expected growth in its cloud services.
- New Position in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, signaling confidence in Apple's AI potential, particularly its vast iPhone user base and upcoming AI-powered smart glasses.
- AI Investment Portfolio Analysis: Although Thiel's hedge fund does not hold Nvidia or Palantir, his investments in Microsoft and Apple demonstrate a preference for
See More
Samsung Electronics Accelerates AI Memory Chip Development
- Intensifying Market Competition: As the sixth-generation high-bandwidth memory (HBM4) supply battle intensifies, Samsung Electronics and SK Hynix emerge as the main competitors, with SK Hynix expected to capture 70% of the market share and Samsung around 30%, impacting the future supply chain dynamics for AI chips.
- Micron Exits Competition: Micron's market share for HBM4 has been reduced to zero due to its inability to meet Nvidia's stringent requirement for data transfer speeds exceeding 11Gbps, further solidifying Samsung and SK Hynix's dominance in the market.
- Mass Production Readiness: Samsung plans to begin shipping HBM4 chips to Nvidia as early as the third week of February, marking its readiness for mass production in AI infrastructure, which will support Nvidia's upcoming Vera Rubin AI accelerators and narrow the gap with SK Hynix.
- Investor Optimism: With data center spending projected to reach $650 billion, investor sentiment around AI-linked U.S. tech stocks has surged, as evidenced by Nvidia's nearly 8% stock price increase on Friday, reflecting strong market confidence in AI technologies.
See More
Amazon Shares Drop 6% Post Earnings Report Amid Market Overreaction
- Earnings Performance: Amazon reported Q4 earnings per share (EPS) of $1.95, slightly below the $1.97 expected by analysts, although its revenue of $213.4 billion exceeded the $211.3 billion forecast, indicating strong performance in revenue generation.
- Capital Expenditure Forecast: Amazon's projected capital expenditures for 2026 are set at $200 billion, a significant increase from $132 billion in 2025, which caused negative investor sentiment despite most spending being directed towards the high-demand AWS business.
- AWS Growth Momentum: AWS revenue surged 24% year-over-year in Q4, reaching an annualized revenue run rate of $142 billion, showcasing robust market demand and ongoing growth potential, particularly in AI workloads.
- Advertising Revenue Growth: Amazon's advertising revenue increased by 22% year-over-year in Q4 to $21.3 billion, with sponsored product ads and Prime Video ads significantly contributing to revenue growth, further solidifying its position in the advertising market.
See More
AI Drives Investment Opportunities in AppLovin and Robinhood
- AI Technology Transformation: Analysts widely believe that artificial intelligence will be the most transformative technology of the next decade, with its economic impact expected to rival that of the internet, and its adoption rate significantly outpacing that of the internet, indicating strong market potential.
- AppLovin Investment Outlook: AppLovin's Axon ad engine leverages AI to match advertiser demand with publisher supply, with adjusted earnings expected to grow at 48% annually over the next three years; the current P/E ratio of 51 times appears reasonable, and analysts' target price of $771 per share implies an 89% upside.
- Robinhood Market Share Growth: Robinhood is gaining market share across multiple brokerage service categories through payment for order flow and other revenue streams, with adjusted earnings projected to grow at 20% annually over the next three years; the current P/E ratio of 34 times is sensible, and analysts' target price of $152 per share suggests an 81% upside.
- AI Tool Innovation: Robinhood's AI investment tool, Cortex, provides real-time data analysis for Gold subscribers, helping users understand stock price movements, with the CEO stating the goal is to offer users a world-class financial team, further enhancing its appeal among younger investors.
See More
