Home / Business and Economy / Google's Parent Crowned 2025 Stock Star
Google's Parent Crowned 2025 Stock Star
15 Dec
Summary
- Alphabet's 64% return significantly outperformed Magnificent Seven peers.
- AI advancements revitalized Google Search paid click growth.
- The company entered 2025 as the cheapest Magnificent Seven stock.
Alphabet (NASDAQ: GOOG, GOOGL) significantly outpaced its Magnificent Seven peers in 2025, delivering an impressive 64% return. This performance was largely driven by strategic AI integration, which revitalized its core Google Search product. Entering the year with a low valuation, the company defied market concerns about AI disruption.
The reacceleration of Search paid clicks, from a mere 2% in the first quarter to 7% by the third, signaled a successful turnaround. This resurgence coincided with the rollout of AI Mode and AI Overviews, enhancing user engagement with Alphabet's homegrown large language models.
Despite its stellar performance, Alphabet retains one of the lowest price-to-earnings ratios in the group, suggesting continued potential for growth. This strategic execution and valuation made it the standout stock of 2025, attracting attention even from investors like Warren Buffett.
