Is Alphabet Stock Outperforming the Nasdaq?

Alphabet Inc. (GOOGL) is a multinational technology conglomerate. Headquartered in Mountain View, California, Alphabet serves as the parent company of Google and several other businesses in areas like cloud computing, autonomous vehicles, life sciences, and venture capital. Alphabet’s market cap stands at around $3.8 trillion, making it one of the most valuable companies in the world.

Companies valued above $200 billion are typically classified as “mega-cap stocks,” and GOOGL easily falls into that category, with a market cap far beyond this mark, underscoring its immense scale, influence, and leadership in the internet content and information industry.

Alphabet is 10.6% down from its 52-week high of $349, achieved on Feb. 3. Shares of Alphabet declined 2.1% over the past three months, underperforming the Nasdaq Composite’s ($NASX) 1.6% surge during the same time frame.

In the longer term, shares of Alphabet slumped marginally on a YTD basis but climbed 74.1% over the past 52 weeks, outperforming NASX’s YTD decline of 2.6% and a 15.9% return over the past year.

To confirm the bullish trend, Alphabet stock has been trading above the 50-day and 200-day moving averages since late June 2025, except for some fluctuations lately.

 Over the past year, Alphabet’s shares have rallied sharply, driven by a resurgence in earnings growth led by its advertising operations and cloud division, alongside stepped-up investments in artificial intelligence. The company has been channeling significant capital into expanding data center capacity and developing custom AI chips, underscoring its commitment to building out AI infrastructure. However, the stock has recently faced some volatility due to concerns regarding the high costs of its aggressive AI investment strategy.

In the competitive arena, Meta Platforms, Inc. (META) has underperformed Alphabet, with a 3.7% plunge on a YTD basis and a 4.8% decline over the past 52 weeks.

Wall Street analysts are highly bullish on Alphabet’s prospects. The stock has a consensus “Strong Buy” rating from the 55 analysts covering it, and the mean price target of $377.83 suggests 21.3% upside from current price levels.