GOOGL Stock Rocked in 2025, But Is Google’s 2026 Forecast as Bright?

Core Insights - Alphabet (GOOG) was the best-performing stock among the "Magnificent 7" in 2025, with gains of nearly 65%, marking its second-best year overall after 2009 [1][3] Group 1: Stock Performance - The stock's impressive performance was unexpected, driven by a combination of factors including strong business performance and favorable market conditions [3][4] - Alphabet's search and cloud businesses performed well, with the cloud segment gaining market share at the expense of Amazon (AMZN) [4] Group 2: Business Growth - Alphabet's cloud backlog reached $155 billion, reflecting a 46% year-over-year increase [4] - The company's Tensor Processing Units (TPUs) became a significant growth driver, with plans from Anthropic to purchase a million units [4] - Meta Platforms (META) is reportedly in discussions to acquire chips worth billions from Alphabet [4] Group 3: AI Advancements - Alphabet made significant progress in AI, particularly with the Gemini 3 model, which prompted a "code red" declaration from OpenAI's CEO [5] Group 4: Legal and Investment Developments - Alphabet received a favorable ruling in an antitrust case, allowing it to retain Chrome and Android and continue its partnership with Apple (AAPL) [5] - Berkshire Hathaway disclosed a multi-billion-dollar stake in Alphabet, signaling strong confidence in the company [6]