As of September 16, 2025, Alphabet Inc. (GOOGL) has made headlines yet again, reaching an all-time high of $253 per share following a notable stock split and driven by various positive developments in its business landscape. The company’s achievement of a $3 trillion market capitalization positions it as one of the elite companies within the U.S. stock exchanges, alongside tech giants like Apple, Microsoft, and Nvidia. Evaluating whether to buy, hold, or take profits from Alphabet stock has become a crucial question for investors at this juncture.
### Alphabet’s Current Performance
The recent surge in GOOGL’s stock price, now up over 120% since a 20-for-1 stock split in July 2022, can primarily be attributed to favorable market conditions and business developments. A significant milestone for the company was a recent antitrust ruling that largely absolved Alphabet from facing substantial penalties related to monopoly investigations concerning its search engine and advertising enterprises. This favorable outcome has instilled renewed confidence among investors, showcasing the resilience and power of Alphabet’s business model.
Further bolstering investor confidence are the growth numbers anticipated for the coming fiscal years. Zacks Investment Research forecasts that Alphabet’s total sales for fiscal 2025 will increase by approximately 13%, with an additional 12% growth anticipated in fiscal 2026. The projections are promising, estimating an increase in earnings per share (EPS) from $8.04 in fiscal 2024 to $9.99 in fiscal 2025, suggesting a healthy bottom line that could incentivize retention of shares.
### Evaluating Growth Catalysts
Several underlying factors contribute to the bullish outlook for Alphabet. The company’s advancements in artificial intelligence (AI)—notably with its large language model, Gemini—has positioned Alphabet for long-term success in both the consumer and enterprise technology sectors. Additionally, Alphabet’s revenue streams from Google Cloud and YouTube continue to thrive, contributing significantly to its overall financial health.
The recent market trajectory indicates that Alphabet could benefit from long-term growth as consumer behavior continues to evolve toward digital platforms, especially in niches where AI plays a critical role.
### Valuation Insights
With a forward earnings ratio of 25.1X, Alphabet currently holds a more attractive valuation compared to its peers in the $3 trillion market cap club, all of which carry multiples above 30X. This suggests that investors may find Alphabet to be undervalued in the context of expected growth.
Moreover, the average price target for Alphabet stock has recently been upgraded by analysts, with some setting targets as high as $300. This optimistic sentiment stems from the company’s strong fundamentals and favorable regulatory news, indicating that there’s still potential for upward movement in the stock price.
### Should You Buy, Hold, or Take Profits?
Determining the best course of action—buy, hold, or take profits—requires a nuanced perspective. With GOOGL showing strong earnings potential and continuing to expand its market dominance, holding onto shares appears to be a viable strategy for long-term investors. The anticipated growth in earnings and revenues makes Alphabet an appealing option for those looking to invest in solid tech stocks.
Conversely, some investors may want to consider taking profits following the stock’s impressive gains in 2025. This is particularly pertinent given that the stock market often experiences fluctuations, and the momentum that has lifted GOOGL may not be sustained indefinitely. Given its current price levels, it might be prudent for investors who have realized significant gains to reassess their positions.
While the stock is poised for further upside, potential buyers may also want to await a market pullback or a better entry point. Given the recent rally, there may be more favorable buying opportunities ahead.
### The Analyst Consensus
Currently holding a Zacks Rank #3 (Hold), Alphabet reflects an equilibrium of bullishness tempered with caution among analysts. This rating indicates that while the stock has solid fundamentals and a promising outlook, investors should also be mindful of the market dynamics that could affect its performance going forward.
The combination of a favorable regulatory environment, robust business growth, and a reasonable valuation compared to peers provides a compelling case for investors to maintain their positions or consider new investments. Overall, GOOGL represents a healthy opportunity for those focused on long-term growth, provided they remain attentive to market signals that may dictate future movements.
### Conclusion
In conclusion, the decision to buy, hold, or take profits in Alphabet stock at its all-time highs warrants careful consideration of current market conditions, competitive advantages, and growth prospects. While the recent uptick in price may tempt some investors to realize gains, the underlying strength in Alphabet’s business suggests that holding the stock for the long term could be a wise move. Ultimately, each investor should evaluate their individual strategies, risk tolerance, and market outlook before making any decisions regarding their Alphabet investments.
Source link










