The stock of Google parent company Alphabet (GOOGL) has closed at a record high, helping to lift the tech-laden Nasdaq (NDAQ) index above the key threshold of 20,000 for the first time.
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GOOGL stock closed at $195.40 on December 11, beating its previous all-time high of $191.18 reached on July 10 of this year. The stock has now rallied 11% higher in two trading sessions after the technology giant unveiled its new quantum computing chip, which it described as a “breakthrough” for the company.
The latest rally has pushed the market capitalization of Alphabet above $2.50 trillion. Year-to-date, the stock has risen 48%. The rise in GOOGL stock also comes as investors rotate capital back into the “Magnificent 7” technology giants, with shares of Tesla (TSLA), Amazon (AMZN), and Meta Platforms (META) each testing all-time highs in recent days.
Nasdaq Hits 20,000
The bullish momentum in mega-cap tech stocks helped to propel the Nasdaq index above 20,000 for the first time in its 53-year history. The index rose 1.8% on December 11 to finish trading at an all-time high of 20,034.89.
The outsized weighting of tech’s mega cap stocks has helped to push the Nasdaq to a 33% gain on the year. The market has rallied since Donald Trump’s election victory on November 5, partly due to expectations for less regulation moving forward. Capital is also being moved into tech stocks as concerns grow about a resurgence of inflation and fewer interest rate cuts ahead.
Is GOOGL Stock a Buy?
The stock of Alphabet has a consensus Strong Buy rating among 33 Wall Street analysts. That rating is based on 27 Buy and six Hold recommendations assigned in the last three months. The average GOOGL price target of $209.21 implies 7.07% upside from current levels.
