Alphabet reaches Value of $1 Trillion
Google became the fourth U.S. company ever to achieve a $1 trillion market value Thursday, joining Apple, Amazon and Microsoft. Google faces investor concerns about antitrust probes into its dominance in advertising and rising costs. Because of these issues Alphabet shares have lagged behind its technology peers in the past year, but many investors remain confident the company can continue growing consistently.
Google is one of those critical, important leaders in multiple areas,” said Michael Lippert, who manages the Baron Capital Opportunity Fund that counts Alphabet among its largest holdings. “You almost can’t live your life without Googling things.”
Alphabet shares have surged since the company said in early December that Google co-founders Larry Page and Sergey Brin were stepping down from managing the parent company and ceding control to Google Chief Executive Sundar Pichai. Analysts have suggested Mr. Pichai could further buoy the stock either by increasing buybacks or potentially instituting a dividend payment for the first time in the company’s history because a chunk of his bonus is tied to share performance.