Buy, Hold, or Take Profits in Alphabet Stock Near All-Time Highs?

Core Insights - Alphabet (GOOGL) has reached a $3 trillion market cap, becoming the fourth company to achieve this milestone, with its stock hitting an all-time high of $253 per share following a 20-1 stock split in July 2022, resulting in a more than 120% increase [1] - The recent stock surge is attributed to a favorable antitrust ruling that alleviated major regulatory concerns regarding its search and advertising dominance [1] Growth Catalysts - Alphabet's growth is driven by advancements in AI, particularly with its voice assistant and large language model, Gemini, alongside strong revenue growth from Google Cloud and YouTube [4] - Projections indicate a 13% increase in total sales for fiscal 2025, with further growth of 12% expected in FY26, reaching $375.31 billion [5] Earnings Expectations - Annual earnings are anticipated to rise by 24% this year to $9.99 per share, compared to $8.04 in FY24, with FY26 EPS projected to increase by another 6% [5] Valuation Comparisons - Among the $3 trillion market cap companies, Alphabet has the lowest valuation at 25.1X forward earnings, while others exceed 30X [7] - Alphabet also has a more favorable price to forward sales multiple, just over 8X, compared to its peers [7] Analyst Insights - Despite surpassing the Average Zacks Price Target of $235.45, some analysts have raised their price targets for Alphabet stock to $300, citing the recent antitrust court victory as a stabilizing factor for its business outlook [9]