Fri Jan 02 09:50:00 UTC 2026: Here’s a summarized news article based on the provided text:
Alphabet Poised for Solid, If Less Spectacular, 2026 After Stellar 2025
Keithen Drury, The Motley Fool – Alphabet (NASDAQ: GOOG), the parent company of Google, is expected to have a solid 2026 after a remarkable 2025 where its stock price surged approximately 65%. The surge followed a year where Alphabet stock was undervalued due to concerns about its AI strategy, antitrust issues, and the future of Google Search.
In 2025, Alphabet addressed these concerns. Its generative AI model, Gemini, gained traction, Google Search integrated AI Overviews, and the antitrust ruling, while unfavorable, didn’t mandate a major business split. These positive developments led to the stock’s significant rebound.
However, after the increase in stock value, Alphabet’s stock trades at about 30 times forward earnings. As a result, analysts suggest that the stock is fairly priced, and investors are not likely to see another year of 65% gains.
For 2026, investors will be watching the continued success of Google Search and Gemini, as well as Alphabet’s potential entry into the AI chip market by selling Tensor Processing Units (TPUs) to external clients like Meta Platforms. Continued growth in Google Cloud, and a potential IPO of SpaceX (in which Alphabet has a 7% stake) are also factors to watch.
Analysts project revenue growth in the mid-teens percentage range for both 2025 and 2026, exceeding the long-term average of the S&P 500. While other tech stocks like Nvidia may offer higher growth potential, Alphabet presents a balanced risk-reward profile for investors.
The Motley Fool analysts believe that Alphabet is a solid stock pick for 2026.
First Piper 