Google Becomes The Newest 3 Trillion Dollar Stock And Only the 4th Ever!! Is a Re-Rating Now Underway?

Google Is The Newest 3 Trillion Dollar Stock! What Comes Next for Investors?

Alphabet (NASDAQ: GOOGL) has long been labelled the cheapest of the “Magnificent Seven,” yet its story is far from ordinary. While the U.S. Department of Justice has placed the company under a microscope, investors have continued to reward its resilience. The stock recently surged into a historic milestone, joining the elite group of companies with a market capitalisation above 3 trillion dollars, a club shared by only three others in history (These are Nvidia, Microsoft and Apple, with the latter being capped at over 4 trillion dollars).

The intrigue here is simple but powerful. Google has momentum on its side, valuation on its side, and perhaps most importantly, investor psychology shifting in its favour. For years, it has been seen as the overlooked giant in a group of tech titans trading at far richer multiples. Now the market seems to be catching on, and the timing could matter more than ever.

The question is whether Alphabet’s rise represents the early stages of a long-overdue re-rating, or whether the company is simply being swept along in a broader wave of optimism. And were the concerns about ChatGPT overblown? 

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Apple and Google Dodge Major Antitrust Blow With Court Ruling

Recently, both Apple and Google secured a significant win in one of the U.S. antitrust cases against Google. U.S. District Judge Amit P. Mehta rejected the government’s request to break up Google or force an end to the payments it makes to Apple. 

These payments, which ensure Google remains the default search engine on Apple devices, are worth more than USD 20 billion (AUD 30.5 billion) annually and have become an important revenue stream for Apple. 

Had the ruling gone the other way, Apple would have faced a sharp hit to earnings, as these payments represent around 5% of its total revenue. Such a scenario could have triggered a meaningful re-rating of Apple’s stock and potentially caused a steep decline in its share price. For now, Apple has avoided that risk, and the decision provides both companies with some breathing room as the broader antitrust battle continues.

Google shares have had a solid 2025…overall

Look up Google’s performance in 2025 and shares are up over 50%. But much of that has been made since May. Google theoretically was a ‘forever stock’ as it had a virtual monopoly over Internet search. Until ChatGPT came along and began to take traffic from Google – ironically at Google’s expense because uses Google Search data! Oh the irony! Well, at least it uses a web-scraping tool (SerpApi) that uses Google.

So far, these concerns have not shown up in the company’s results. Its revenues in Q2 were up 14% year on year while its net income was up 19%. The Search division delivered double digit growth and its Cloud and YouTube divisions did well too. CEO Sundar Pichai hailed the results as ‘a standout quarter’, and that his company was,’ Leading at the frontier of AI and shipping at an incredible pace’.

Why Google Looks Undervalued Against Big Tech on EBITDA Multiples

From a valuation perspective, Alphabet trades on an expected 2026 enterprise value to EBITDA multiple of around 14 times. This comes alongside forecast EBITDA growth of 46 percent, supported by the company’s ongoing improvements in operating leverage. Net margins have expanded meaningfully, rising from 20.6 percent in March 2023 to 31% in the most recent quarter, reflecting Alphabet’s sharpened focus on profitability.

When set against peers, the relative value becomes clearer. Amazon currently trades at 14.2 times forward EBITDA, Meta at 15.1 times, Microsoft at 20.2 times, and Netflix at 33.4 times, with the group median sitting near 17 times. On this basis, Alphabet appears undervalued compared with its peers, particularly given its growth outlook and improving margin profile.