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Google hits a trillion

by on17 January 2020

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Google-parent Alphabet became the fourth US company to top market value of more than $1 trillion.

Shares of the Internet search giant are up nearly 17 percent over the last three months, outpacing a broader rally in the S&P 500 index over the same period by six percentage points.

Alphabet joins, Apple and Microsoft as the only US companies to hit $1 trillion in market value.

Alphabet’s shares are among a small group of stocks found in the top holdings of both mutual funds and hedge funds, two types of institutions whose investing styles tend to be markedly different, a Goldman Sachs analysis showed. That could leave it exposed to volatile price swings if sentiment suddenly changes.

Alphabet is scheduled to report fourth-quarter earnings on 3 February  In its latest report, the company missed analysts’ estimates for third-quarter profit by about $1.7 billion, though it beat revenue expectations. That news did little to dent investors’ bullishness on the company: Alphabet’s stock retreated briefly on the report, only to resume its climb several days later.

Bearish investors, however, can point to, which saw its market value fall below $1 trillion after its streak of record profits ended in July. Shares of the company are down nearly seven percent over the last six months, compared with a 10 per cent gain in the S&P 500 overall.


Last modified on 17 January 2020
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