Google hits $3 trillion after antitrust ruling and cloud boom

Core Insights - Alphabet has reached a $3 trillion market value, becoming only the fourth U.S. company to achieve this milestone, reflecting investor confidence in its AI ambitions [1][2] Financial Performance - Shares of Alphabet increased over 4%, elevating both classes of its publicly traded stock into the $3 trillion club, joining Nvidia, Microsoft, and Apple [2] - Google Cloud reported a nearly 32% year-over-year revenue increase to $13.6 billion, with expectations to exceed $50 billion annually if growth continues [4] Regulatory Environment - Recent court rulings in an antitrust case did not impose severe penalties on Alphabet, allowing the company to maintain its core platforms while facing manageable compliance obligations [3] - The legal landscape appears to have stabilized, enabling the market to focus on Alphabet's growth potential rather than regulatory risks [5][7] Market Dynamics - The rise of AI has shifted market perceptions, with investors now viewing it as a growth driver rather than merely a cost [5] - The $3 trillion milestone indicates that large-scale infrastructure and distribution are effectively monetizing AI, surpassing initial skepticism [7] Future Outlook - Alphabet's challenge will be to sustain margins while expanding its cloud business and integrating AI into various workflows [6] - The company has increased its capital expenditures plan by $10 billion to $85 billion to meet data-center demand, which could impact margins if cloud adoption slows [4][7]