Is Google Stock a Buy at New All-Time Highs in January 2026?

Core Viewpoint - U.S. markets began 2026 positively, with major indices and tech stocks, particularly Alphabet, reaching record highs due to enthusiasm for AI and tech companies [1][2]. Company Overview - Alphabet, the parent company of Google, has a market capitalization of approximately $3.9 trillion and dominates online search, advertising, and owns various tech businesses including YouTube, Android, and Google Cloud [4]. - The company has a significant competitive advantage due to its extensive product ecosystem, including search data and cloud infrastructure [4]. Stock Performance - In 2025, Alphabet's stock increased by about 67% year-over-year, significantly outperforming the S&P 500, driven by strong advertising and cloud growth alongside investor excitement regarding AI initiatives [5]. - Following an upgrade from Cantor Fitzgerald, Alphabet's stock reached a new intraday high of approximately $330.54, reflecting Wall Street's optimism about its AI investments [7]. Valuation Metrics - Alphabet's stock is currently valued at a trailing P/E ratio of around 30x, which is considerably higher than the 18x median for the Communication Services sector [6]. - The price-to-sales ratio stands at 10x, exceeding the sector's mid-single-digit average, and the PEG ratio is near 1.8, indicating high growth expectations [6].