Google C Shares Soar Past $200 Amid AI Advancements and Record Revenue Growth

As of last week, Google C (GOOG) shares saw an uptick of 1.16%, contributing to a weekly increase of 3.85% and a year-to-date rise of 6.02%. On January 24, 2025, the company's trading volume amounted to $25.64 billion, ranking 19th in the U.S. stock market for the day, albeit seeing a 15.37% decrease from the prior day with a trading volume of 12.73 million shares. Over the past 52 weeks, the stock has achieved a remarkable gain of 31.28%.

Alphabet Inc., Google's parent company, oversees a myriad of sectors ranging from technology to life sciences. Founded on September 4, 1998, in California and restructured into Alphabet in 2015, the company focuses on internet search, cloud computing, and advertising technology, among others. Google C (GOOG) on January 25 rose by 1.21% in pre-market trading to $201.99 per share with a total transaction value of $14.58 billion.

Financially, as of September 30, 2024, Google C reported a total revenue of $253.55 billion, reflecting a 14.68% increase compared to the previous year, with net profit reaching $73.58 billion, marking a significant increase of 38.55%. It is anticipated to release its 2024 fiscal year report on February 4, 2025.

Moreover, investor interest in Google has been invigorated, especially concerning its strides in artificial intelligence (AI), leading its stock to close above $200 for the first time in its history. The stock rose by 1.1% on Friday, with a year-to-date gain of nearly 6%, outpacing the Nasdaq's 3.3% increase. Google achieved this milestone following its 20-for-1 stock split in 2022, adjusting from a pre-split value of approximately $2750 per share.

Alphabet is also expected to release its fourth-quarter earnings shortly after other tech giants such as Microsoft, Meta, Tesla, and Apple disclose their financial performances. In the third quarter of 2024, Alphabet's revenue climbed by 15%, surpassing the previous year's growth rate, with sales reaching $88.3 billion. The period also saw a record high for revenue generated from its cloud services.

Despite strong competition from players like OpenAI in the AI domain, analysts believe Google maintains a dominant position due to its broad application of new AI functionalities across various products. Analysts from Morgan Stanley emphasized Google's technological prowess, citing developments in its AI initiatives such as “Project Astra” and "Project Mariner", alongside the new language model Gemini 2.0. However, they noted that Google must enhance its consumer products to ensure widespread adoption.

In a 2025 strategic meeting with employees, Google executives acknowledged the challenges ahead, including intensified competition and regulatory scrutiny, amidst rapid AI advancements. Despite early issues with some products in the first half of 2024, Google successfully launched key AI products later in the year, boosting market confidence.