Google parent company Alphabet once rose 4.8%, climbing to a $3 trillion market value.

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On Monday, the stock price of Google’s parent company Alphabet once rose by 4.8% to $252.41, with its market value surpassing the important $3 trillion mark. Since its low in April, the company’s stock price has soared over 70%, adding about $1.2 trillion in market capitalization during this period. This is the latest sign of improved investor confidence in the company.

Alphabet has joined the club of companies with a market capitalization exceeding $3 trillion. Currently, only Nvidia, Microsoft, and Apple have crossed this threshold.

Alphabet’s latest surge was driven by a highly anticipated antitrust ruling—which avoided the harshest measures sought by regulators, including the requirement to sell Alphabet’s Chrome browser. The decision followed Alphabet’s release of its second-quarter earnings report. The report showed that demand for artificial intelligence products is driving the company’s sales growth.

Earlier on Monday, Citigroup analyst Ron Josey sharply raised Alphabet’s target price from $225 to $280, citing that “as Gemini adoption accelerates in advertising and cloud businesses, the product development cycle is speeding up.”

Josey wrote in a report to clients:

This trend has emerged “amid a clearer situation regarding its legal and regulatory challenges, and we believe the current online advertising market is relatively healthy.”

Although Google’s search business faces competition, we believe Google is executing better across its suite of products, with stronger demand and improved profitability.

The above comments reflect Wall Street’s generally positive attitude toward Alphabet. Among analysts tracked by Bloomberg, over 80% recommend buying, though this rate is lower than those for Nvidia, Microsoft, Amazon, and Meta, each of which have buy recommendation rates near or above 90%.

Alphabet is still considered relatively inexpensive among big tech stocks. Its stock price is only 22.5 times estimated earnings, slightly above its 10-year average, but still below the Nasdaq 100’s multiple of about 27 times. Among the “Magnificent Seven” tech companies, Alphabet’s valuation is second only to Meta, whose estimated P/E ratio is just under 22 times.

However, some analysts point out that Alphabet’s stock price may have difficulty maintaining its rapid pace of increase. Its 14-day Relative Strength Index (RSI) is close to 90—a multi-year high and far above 70, which is typically considered overbought in technical analysis. Alphabet’s current trading price is also much higher than analysts’ average target price, the widest gap in its history.

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