Alphabet Stock— Alphabet Inc. (NASDAQ: GOOG, GOOGL) is showing renewed strength in the stock market, driven by strong AI innovation and robust earnings. This comes despite growing regulatory concerns over its proposed acquisition of cybersecurity startup Wiz.
After a rough start to 2025, Alphabet stock has rebounded from recent lows. It had been down nearly 13% year-to-date, but investor sentiment has shifted following a series of strategic announcements and earnings results.
The company’s launch of “AI Mode” in Google Search across the U.S. has sparked renewed optimism. This move, aimed at enhancing complex search queries with generative AI, is seen as a direct challenge to emerging AI chatbot competitors.
At its recent I/O developer conference, Alphabet demonstrated its long-term commitment to AI. Executives emphasized that advanced AI could unlock new advertising opportunities — a key revenue driver for the company.
Alphabet also reported a strong financial performance for Q1 2025. Total revenue climbed 12% year-over-year to $90.2 billion, beating Wall Street expectations.
Google Cloud was a standout in the report, with revenue surging 28%. The division continues to attract enterprise clients, thanks to its AI-powered tools and security offerings.
In a vote of confidence, the company announced an increased quarterly dividend and approved a major stock buyback plan. Analysts and investors see this as a sign of strong underlying fundamentals.
However, Alphabet now faces regulatory scrutiny over its $32 billion bid to acquire Wiz, a cloud security firm based in New York.
The U.S. Department of Justice has opened an antitrust review into the deal. Regulators are concerned it could reduce competition across major cloud platforms, including AWS and Microsoft Azure.
Wiz offers real-time AI threat detection tools that are currently accessible across multiple cloud ecosystems. Folding Wiz into Google Cloud could limit access or shift competitive dynamics in the cloud security market.
The acquisition was nearly completed last year for $23 billion but was delayed over similar concerns. This renewed review could again result in delays or force Alphabet to offer concessions.
Despite the legal challenges, analysts remain largely bullish on Alphabet stock. The recent rebound from technical support levels is being viewed as a potential bottom.
Institutional investors have increased their holdings, suggesting confidence in the company’s long-term outlook. Alphabet’s ongoing innovation in AI and cloud computing remains a key catalyst.
With a favorable valuation and momentum in its core businesses, many see Alphabet’s recent weakness as a long-term buying opportunity.