Alphabet Inc, Google’s parent company, is close in to join its peers, Microsoft Corp and Apple Inc in the elite $2 trillion market valuation club with the search engine giant’s shares surging more than 8% following a better than expected quarterly results.
With the stock trading at around $2,975, Alphabet’s stock was on track for its largest one-day percentage gain in almost two years, easing concerns around owning Big Tech following a sector-wide selloff in the past few weeks.
Alphabet’s stock valuation peaked above $2 trillion after the start of the trading session and was last seen trading at $1.97 trillion; this includes class B shares that are not traded on the stock market and are held by insiders.
A close above $2 trillion would be the first ever for the Mountain View, California-based company.
“The technology sector started 2022 with some of the biggest question marks over it since the dotcom crash more than two decades ago,” said Russ Mould, investment director at AJ Bell. “However, the largest and highest quality U.S. tech names continue to deliver the answers the market wants with big earnings beats.”
In the last two years, shares of Wall Street’s most valuable companies have soared on the back of pandemic-led shift in spending patterns, even as regulators around the globe scrutinizes them over alleged breaches of privacy and antitrust concerns.
Alphabet Inc also announced a 20-to-1 stock split, which will give shareholders 19 shares for every share they hold.
“The split will make the shares more accessible for retail investors and likely facilitate inclusion in the Dow Jones Industrial Average (which is somehow still share price-weighted), but it has no fundamental impact,” said Doug Anmuth, an analyst at J.P. Morgan.