On Tuesday, Alphabet, the parent company of Google, reached a historic achievement as its market capitalization surged to an unprecedented peak of $1.95 trillion.
Google’s stock price experienced an unprecedented surge, reaching a peak of $159.89 per share during the trading day before settling at a closing price of $158.14. This notable 1.3 percent gain occurred despite minor losses in the broader market.
The company’s impressive performance has brought it closer to joining the exclusive $2 trillion club, which currently includes tech giants like Microsoft, Apple, and Nvidia, along with Saudi Aramco, the Saudi Arabian oil behemoth.
Alphabet’s recent ascent is supported by a remarkable 13 percent increase in its share price since the beginning of the year, coupled with an impressive 77 percent surge since the end of 2022.
This surge in value is attributed to record-breaking profits fueled by robust advertising spending and heightened investor optimism surrounding Alphabet’s potential in artificial intelligence (AI) technology.
Industry analysts foresee continued growth for Alphabet, with an average price target of $166 suggesting a market capitalization of $2.1 trillion, as initially reported by Forbes.
It is noteworthy that Google experienced a significant setback two months ago, with its market valuation dropping by $90 billion. This decline was primarily attributed to issues related to its Gemini AI service, which produced inaccuracies in racial images of historical figures, resulting in a 4.5 percent decline in the company’s share price to $138.75.
