Today, Alphabet's shares witnessed an upward trend.
The equity of Google's parent company, Alphabet (BOOST 1.31%), (GOOGL 1.25%) experienced an uptick today following its inclusion in Barron's list of preferred stocks for 2025, along with favorable market trends.
Subsequently, the stock surged by 4.3% at 12:46 p.m. ET.
Alphabet's ascendancy
A mix of factors propelled the tech stock further upwards today, building upon last week's growth post-launch of its quantum computing chip, Willow.
Investors seemed particularly receptive to Barron's decision to enlist Alphabet among its top 10 investment picks for 2025. Notably, Alphabet emerged as the sole representative from the "Magnificent Seven" in this esteemed list, with the tech titan trading at more reasonable prices compared to its peers, boasting a price-to-earnings ratio of 26 despite reaching an all-time high today.
In other positive news, the approaching Trump administration appears set to scrap an automobile accident report rule pertaining to self-driving vehicles, potentially bolstering Waymo's efforts to expand its autonomous vehicle operations. Furthermore, investors seem inclined to believe that the new FTC head, Andrew Ferguson, may be more accommodating towards tech giants compared to Lina Khan, the current head.
Lastly, a report emerged over the weekend detailing a dinner between CEO Sundar Pichai and co-founder Sergey Brin with the newly-elected president, hinting at an amelioration in business ties with the incoming administration.
Alphabet's upcoming trajectory
As a company heavily reliant on search ads, Alphabet's stock is generally contingent upon the overall health of the economy; a stable and growing global economy bodes well for the tech behemoth.
Despite this, its valuation seems relatively secure compared to some Magnificent Seven peers, albeit its advertising model still exposes it to risks as artificial intelligence technology evolves.
Investors are eager to allocate more money into Alphabet's finance sector, seeing its inclusion in Barron's top 10 investment picks for 2025 as a strong signal. The low price-to-earnings ratio of 26, despite reaching an all-time high, makes it an attractive option for those interested in investing in finance and technology.
