As AI Propels Alphabet Stock Upward, GOOGL Nears $4 Trillion Valuation

Core Insights - Alphabet's stock reached a new high on November 19, closing approximately 3% higher after the launch of its AI model, Gemini 3, which enhances AI performance and investor optimism [1] - The company is showing strong momentum across its core businesses, with a market capitalization of around $3.54 trillion, positioning it towards a potential $4 trillion valuation driven by AI [2] Financial Performance - Alphabet reported its first-ever $100 billion revenue quarter, with AI significantly boosting results across various segments including search, advertising, YouTube, cloud computing, and subscription services [3] - The search and other revenue reached $56.6 billion, reflecting a 15% year-over-year increase, driven by new AI features that enhance user experience and commercial value [6] Subscription Growth - The subscription ecosystem is rapidly expanding, with over 300 million paid subscribers across Google One and YouTube Premium, indicating strong recurring revenue streams [4] Investor Confidence - Investor confidence was bolstered by Berkshire Hathaway's new stake in Alphabet, adding credibility to the bullish outlook for the company's stock [4] - GOOGL shares have surged 80% in the past six months, with continued AI advancements suggesting further growth potential [5] Cloud Segment Performance - Demand for AI-driven solutions has led to a strong performance in the cloud segment, with a backlog increasing by 46% from the previous quarter to reach $155 billion [3]