Tech giant Alphabet Inc. surged to hit a fresh record-high market value of $2 trillion on the back of higher spending on digital ads and its cloud business, Bloomberg reported.
Class A shares jumped as high as 1.2% to reach a record-high before moderating to close up 0.1%. The company is among the five biggest tech stocks by sales, up 70% due largely to its advertising business.
Bulls expect the company’s stock to continue its uptrend due to its cheaper valuation, and a higher growth rate than most of its peers. It is now at the same level as Apple Inc. and Microsoft Corp. which hit the $2-trillion mark this year.
The majority of analysts covering the stock recommend buying Alphabet shares, with the 12-month price target for the stock at $3,321, indicating an 11% return from its current price.
Alphabet saw its third-quarter sales surpassing analysts’ estimates, which analysts say were among the firm’s most impressive seen in recent years. Future earnings will be driven by continued growth.
Alphabet’s earnings per share are expected to climb to nearly $130 in 2023.