Alphabet’s Valuation Hits $1 Trillion Milestone
Alphabet, the parent company of Google, recently reached a significant milestone by achieving a valuation of $1 trillion. This makes Alphabet the fourth American company ever to reach this prestigious mark. Investors are now facing the decision of whether to sell off some of their Alphabet stocks as the company’s value continues to rise steadily.
Over the past three months, Alphabet’s stock has surged by 17%, outperforming the average S&P 500-listed stock, which only saw a 6% increase during the same period. Despite this impressive growth, short interest in Alphabet remains low at just 1%, indicating that very few are willing to bet against the company’s upward trajectory. Both mutual funds and hedge funds have shown a strong preference for Alphabet’s stock, consistently ranking it highly in their portfolios.
Joining the ranks of Apple, Amazon, and Microsoft, Alphabet now stands as one of the only trillion-dollar businesses in the United States. The company is set to announce its fourth-quarter earnings on February 3rd, further fueling investor interest. While some concerns exist regarding a potential downturn in the stock price amid shifting market sentiments, investors remain optimistic about Alphabet’s future prospects. Notably, Amazon experienced a decline below the $1 trillion mark after a period of record profits abruptly ended in July 2019, resulting in a 7% drop in its share value.
