Google’s parent company, Alphabet, is now worth $3 trillion, a feat only achieved by three other tech giants: Nvidia, Microsoft, and Apple.
Alphabet shares gained more than 4% in value on Monday, allowing the company to achieve a historic market capitalization of $3.03 trillion at the time of writing. Market capitalization measures the total value of a company by multiplying its share price by the number of outstanding shares.
Alphabet hit the $3 trillion mark just over two decades after Google first went public in 2004, and more than 10 years after its own creation as Google’s parent company.
Related: Amazon Is the Fifth Company in History to Join the Coveted $2 Trillion Tech Club
Alphabet’s market cap has grown tremendously, more than 70%, from a low of $1.8 trillion in April. The recent surge value is partially due to an antitrust ruling earlier this month in the case Department of Justice (DOJ) v. Google, which resulted in lighter penalties than initially suggested by the DOJ. The ruling caused Alphabet shares to rise by over 20% over the past month.
Alphabet CEO Sundar Pichai. Photographer: David Paul Morris/Bloomberg via Getty Images
In the week following the ruling, Alphabet gained $234 billion in market cap. The company’s stock is up more than 30% year-to-date. For context, the Nasdaq as a whole is up 15% for the year, per CNBC.
Related: Google Reportedly Told Its Staff to Use AI More or Risk Falling Behind: ‘It Seems Like a No-Brainer’
Wall Street generally views Alphabet stock favorably. More than 80% of Wall Street analysts recommend buying the stock as of Monday, per Bloomberg.
Alphabet joins other tech giants that have made it into the $3 trillion club — and beyond. Apple achieved the $3 trillion milestone in June 2023, while Nvidia and Microsoft have taken it a step further by passing the $4 trillion mark.
Nvidia achieved a $3 trillion market cap in June 2024 and later surpassed $4 trillion in early July, for a market cap of $4.3 trillion at the time of writing. Microsoft, meanwhile, hit the $3 trillion mark in January 2024 and passed the $4 trillion point in late July, though its market cap has dropped to $3.8 trillion at the time of writing.
Alphabet’s focus in recent years has been on artificial intelligence, as the company strives to compete with Meta, OpenAI, and other key players in the AI race. While announcing its second-quarter earnings in July, Alphabet mentioned that it was increasing its AI expenditures from $75 billion to $85 billion amid growing demand for its cloud and AI services.
“AI is positively impacting every part of the business, driving strong momentum,” Alphabet and Google CEO Sundar Pichai stated in the earnings report.
Related: This Is How Senior Leaders Are Using AI at Work, According to a Google Survey
Google’s parent company, Alphabet, is now worth $3 trillion, a feat only achieved by three other tech giants: Nvidia, Microsoft, and Apple.
Alphabet shares gained more than 4% in value on Monday, allowing the company to achieve a historic market capitalization of $3.03 trillion at the time of writing. Market capitalization measures the total value of a company by multiplying its share price by the number of outstanding shares.
Alphabet hit the $3 trillion mark just over two decades after Google first went public in 2004, and more than 10 years after its own creation as Google’s parent company.
The rest of this article is locked.
Join Entrepreneur+ today for access.
Read the full article here
