Home / Business and Economy / Alphabet Stock Soars: A Top 4 Performance Year
Alphabet Stock Soars: A Top 4 Performance Year
12 Jan
Summary
- Alphabet shares are up sharply in 2025, marking its fourth-best year.
- The company maintains strong profitability with near historical gross margins.
- Revenue is diversified, with cloud and YouTube advertising driving growth.
Alphabet's stock has experienced a significant rally in 2025, positioning it among the company's top-performing years since its 2004 IPO. This strong performance is notable given the current market's preoccupation with AI trends and macroeconomic concerns.
The company's financial health underpins this success, with gross margins near historical highs and a free cash flow margin around 20%. Diverse revenue streams, including search, cloud services, subscriptions, and YouTube advertising, ensure continued growth and profitability.
Technically, Alphabet's stock shows continued strength, though signs of short-term exhaustion are emerging. While momentum indicators suggest the long-term uptrend remains intact, investors are advised to manage short-term expectations.
