Decoding Google Stock's Recent Volatility

Core Insights - Alphabet's stock has surged 77% over the last six months, driven by slight revenue and margin increases alongside heightened investor enthusiasm [2][3] Factors Driving Stock Performance - The stock's increase is primarily attributed to a 64% rise in its P/E multiple, with revenue and net margin growing by 3.8% and 3.6% respectively [4] - Significant earnings surprise in Q3 2025, where Alphabet exceeded EPS and revenue predictions, contributing to strong stock performance in October [9] - Advancements in AI, particularly the launch of Gemini 3 and competition with Nvidia's TPUs, have generated optimism [9] - A crucial antitrust ruling allowed Alphabet to retain Chrome, resulting in a 9% stock surge on September 3, 2025 [9] - Rapid growth in Google Cloud, with a $155 billion backlog from AI infrastructure, including a deal with Meta [9] - Berkshire Hathaway's new investment of approximately $4.3 billion in Alphabet, as revealed in Q3 2025 filings, has further bolstered investor confidence [9]