Google stock wraps best year since 2009 as AI excites Wall Street
Google stock wraps best year since 2009 as AI excites Wall Street
Publish Date: 2025-12-31 16:06:00
Source Domain: www.cnbc.com
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Strong Year Despite Initial Uncertainty: Google’s parent company, Alphabet, experienced its best year on Wall Street since 2009, with a 65% increase in its stock for the year, though it faced difficulties early on during a period of tariff threats.
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Dominant Gains Among Tech Giants: Among the tech companies valued over $1 trillion, Alphabet saw the biggest gains, outpacing the next largest increases from chipmakers Broadcom and Nvidia.
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AI Advancements and Market Response: Alphabet introduced several AI innovations, notably the Gemini app, which surpassed usage of OpenAI’s ChatGPT, and advanced its AI model to Gemini 3, showing rapid progress in the AI market.
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Legal Setbacks Turned Positive: Google’s antitrust case resulted in findings of an illegal monopoly but received a more lenient ruling than anticipated, preserving key business practices while requiring data sharing with competitors.
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Rising Cloud Business and Growth Projections: Google’s cloud computing business is experiencing significant growth, driving expectations for high revenue growth, projected at over $111 billion for the fourth quarter and more than $114 billion for 2026.
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Strategic Acquisitions and Talent Acquisition: Google acquired significant talent from AI startup Windsurf for $2.4 billion, bolstering its AI expertise and competitive edge in the AI domain.
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Analysts’ Continued Bullish Outlook: Despite high expectations, analysts maintain a positive outlook on Alphabet’s future, highlighting the potential for sustained growth and innovation in AI and related sectors.
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AI-Driven Search Enhancements: Google’s introduction of AI Overviews in its search engine is improving relevance and engagement, anticipated to boost search revenue in the later part of 2025 and beyond.
