How Google Stock Soared >30% In 3 Months

Core Insights - Alphabet (GOOGL) stock experienced a 34.2% change from July 11, 2025, to October 9, 2025, primarily driven by a 28.2% shift in the company's P/E multiple, indicating increased expectations for future performance [2][3] Financial Performance - Google reported strong Q2 2025 results with consolidated revenue rising 14% year-over-year to $96.4 billion and earnings per share increasing by 22% to $2.31, both exceeding analyst expectations [5] - Google Cloud was a significant contributor, showing a 32% revenue growth attributed to AI infrastructure and generative AI solutions [5] - Analysts project Q3 2025 earnings per share between $2.29 and $2.30, with revenue estimates around $84.56 billion [9] Capital Expenditure and Strategic Moves - The company raised its capital expenditure guidance for 2025 to $85 billion, focusing on AI infrastructure and cloud services [9] - Google has initiated cash dividend distributions to shareholders, with a quarterly dividend of $0.21 [9] Market Reactions and Investor Sentiment - Following the Q2 results, the stock initially declined due to concerns over increased capital expenditures and potential margin pressures for Q3 [5] - In September 2025, the stock saw a 14% rally driven by enthusiasm for AI and a favorable outcome in the Google Search antitrust case, which did not require divestment of Chrome or Android [5] - Despite strong performance, stock movement faced challenges from ongoing regulatory scrutiny and rising competition in the AI sector [5] Insider Activity - Significant insider stock sales occurred, including transactions by CEO Sundar Pichai and Director Frances Arnold in late September and early October 2025 [9]