Alphabet Reclaims $200 Threshold—Bull Run Reignited?

Core Viewpoint - Alphabet has made a significant recovery in 2025, overcoming initial regulatory fears and concerns about its market dominance in search and advertising [1][2]. Financial Performance - Alphabet's Q2 2025 earnings report showed total revenue of $96.43 billion, a 14% year-over-year increase, with earnings per share at $2.31, up 22% YOY [5]. - Key growth drivers included a 32% increase in Google Cloud revenue to $13.62 billion, and an 11.7% growth in Google Search & Other, surpassing the expected 8% [6][7]. Stock Performance - The stock is up 6.18% year-to-date and has surged 32% in the past quarter, with an 11.5% increase this month alone [2]. - Alphabet has reclaimed the $200 level, a significant psychological and technical resistance point, and is now less than 3% from its 52-week high [3]. Analyst Ratings and Price Targets - Analysts have raised their price targets following strong earnings, with Barclays increasing its target to $235 and JPMorgan to $232 [7]. - The current price target for Alphabet is $211.53, indicating a potential upside of 4.62% from the current price [6]. Institutional Investment - Institutional investors have shown renewed interest, with $96 billion in Alphabet shares purchased over the past year, compared to $52 billion in outflows [8]. Valuation Metrics - Despite recent gains, Alphabet's P/E ratio is around 21.4, and its forward P/E is 18.9, suggesting it is not trading at inflated tech bubble multiples [9]. Entry Strategy - A potential entry point for investors could be on a pullback to support levels near $190 or $180, where previous resistance was overcome [10].