Yahoo Finance·2026-01-17 20:23Core Viewpoint - Alphabet was the top-performing stock among the "Magnificent Seven" in 2025, driven by multiple catalysts, but a similar performance in 2026 is not expected, although it is anticipated to outperform the market [1]. Group 1: Performance and Market Position - Alphabet's stock had a remarkable 65% increase in 2025, but such a performance is not expected to be repeated in 2026 [1]. - The company has emerged as a leader in the generative AI sector, with its Gemini model challenging existing leaders in accuracy and utility [3][8]. Group 2: Revenue and Business Concerns - Google Search, Alphabet's primary revenue source, generated $56.6 billion out of a total of $102.3 billion in Q3 [4]. - Concerns regarding Google Search included threats from generative AI and potential divestitures due to antitrust rulings, but these fears have been alleviated [5][6]. Group 3: Legal and Regulatory Developments - A federal judge imposed lighter penalties on Alphabet for antitrust violations, allowing the company to avoid a breakup and only requiring minor concessions [7].