Why Alphabet Stock Is Soaring Today

Shares of alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) rose today after the tech giant was named the top stock for 2025 Barrons and appeared to benefit from broader market news.

As a result, the stock was up 4.3% as of 12:46 p.m. ET.

A flurry of news appeared to push the tech stock higher today as it added to last week’s gains following the launch of its quantum computing chip Willow.

Today, investors seemed to respond Barrons Deciding to add Alphabet to its list of 10 favorite stocks to buy for 2025. Alphabet was the only “Magnificent Seven” stock to make the list, and the tech giant is cheaper than most of those peers and still trades at a price-to-earnings ratio of 26, despite trading at a reached all-time high.

Other news that could benefit Alphabet is that the new Trump administration wants to remove the requirement to report car accidents involving autonomous vehicles, which could benefit Waymo as it tries to expand its autonomous vehicle business, and Investors also seem to believe Trump’s decision. The head of the Federal Trade Commission, Andrew Ferguson, is likely to be more friendly towards large technology companies than Lina Khan, the current head.

Finally, a report this weekend said that CEO Sundar Pichand and co-founder Sergey Brin had dinner with Trump on Thursday, marking another sign of potentially improved relations with the new administration.

Alphabet, which still makes most of its money from search advertising, is closely linked to the overall economy. Therefore, the stock should continue to perform well if the global economy remains stable and continues to grow next year.

Given its valuation, it appears to be safer than some of its “Magnificent Seven” competitors, although its advertising business still faces risks as artificial intelligence technology advances.

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