Google parent company Alphabet has reached a market value of $3 trillion (€2.55 trillion). The milestone follows optimism surrounding artificial intelligence and a favorable antitrust ruling that allows the company to retain control of Chrome and Android.
For Alphabet, the market value of $3 trillion confirms that its AI strategy is heading in the right direction. The company is investing heavily in machine learning and natural language processing, which is now resulting in strong financial performance in the cloud division.
The combination of a favorable court ruling and solid operating results gives investors confidence in the group’s future.
Lawsuit and cloud revenues as catalysts
The recent jump in the share price followed a ruling by a US federal judge allowing Alphabet to retain control of Chrome and Android. This decision eases the pressure on the company, which has long been under fire for its dominant position in search and mobile ecosystems.
In addition, the cloud division contributed to investor confidence. In the second quarter, revenue rose by almost 32 percent, exceeding expectations.
Alphabet’s shares rose 4.6 percent to $251.88 (Class A) and 4.5 percent to $252.30 (Class C) on Monday. Both classes thus reached record highs. The increase brings the group into the select group of companies with a market capitalization of $3 trillion.
Apple and Microsoft already belong to this exclusive club. Nvidia even surpassed this threshold, reaching $4 trillion earlier.