Alphabet (Google) share price rises to hit US$1tn market cap

The megacap stock just got bigger, thanks to a buying frenzy inspired by recent bullish price targets.

Shares of Alphabet Inc. (NASDAQ: GOOGL), the parent company of search engine Google, rose 0.76% to close at a historic high of US$1,450.16 per share on Thursday, 16 January.

This takes the company’s market capitalisation to one trillion US dollars, making it the fourth US company to do so, after Apple, Microsoft, and Amazon.

Higher price targets driving demand

The company’s share price has been boosted by higher analyst price targets in recent weeks, in anticipation of its Q4 earnings release on 03 February, as well as the recent appointment of new CEO Sundar Pichai.

Deutsche Bank analyst Lloyd Walmsley, for example, had raised his price target from US$1,550 to US$1,750 at the start of the week, stating that ‘the key medium term focal point this quarter will be any signs of a more shareholder friendly approach under the new leadership with Sundar Pichai taking over the Alphabet CEO job’.

Analysts at US investment banking firm Evercore had also increased their Alphabet share price target to US$1,600 from US$1,350, an 18.5% upside.

They predicted that Google’s global revenue will gain 18% in 2020, on the back of larger cloud and YouTube advertising revenue – two key growth industries in the US.

“The shift in large advertiser’s brand spend from TV to digital remains a secondary driver of digital ad spend growth,” Evercore said in a note.

Total volume of shares traded increased from 1,077,519 on 15 January to 1,304,040 on 16 January.

Take advantage of bullish company share prices today with a free IG demo account.

Up next: 2019 holiday-quarter earnings

Share value could go even higher, with analysts expecting the search engine giant’s 2019 fourth quarter earnings to be in line with those of the first three.

Alphabet's top-line rose 22% in the Q3 and Q2, and 19% in Q1. Its ‘Google Other’ business segment, which include mobile, YouTube, and cloud computing, was a main driver of revenue growth.

The segment’s revenue expanded 39% year-on-year to US$6.4 billion in Q3, a key statistic that investors would be focusing on in the upcoming update.

For the fourth quarter, analysts are forecasting a revenue of US$46.9 billion, which would represent a 19.5% increase from the same period last year.

Still, Alphabet Chief Financial Officer Ruth Porat said during the company's Q3 earnings call that there is always a possibility of ‘variability in year-on-year revenue growth rates from quarter-to-quarter as we've often discussed’.

Practise trading Alphabet, Inc. shares and more with a free IG demo account today.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.