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The Magnificent 7 was already a small club. Today, Alphabet entered an even more exclusive group, becoming the fourth publicly traded company to hit a market cap of $3 trillion, joining Nvidia, Microsoft, and Apple.
It's just the latest victory for Alphabet, which has been riding high ever since a judge ruled that the company would not have to be broken up, despite a court deeming its search business an illegal monopoly back in August 2024. Ironically, the recent ruling was due in no small part to rising competition from AI startups like Perplexity and OpenAI—only a company as massive as Alphabet could climb thanks to more competition.
Alphabet looked like it was a step behind its rivals when it first rolled out its AI chatbot Bard in February 2023, only to watch the bot flub questions live on camera and subsequently tank the company’s stock. Since then, Alphabet has beefed up its AI department, spending $67 billion in just the last 12 months to stay a step ahead of its rivals.
It’s clearly working: Over the weekend, the company’s Gemini chatbot overtook ChatGPT as the most popular free app on the Apple app store.
Alphabet shares are up about 71% since the stock hit its April low, and at this rate, it’s only a matter of time until the company enters the $4 trillion club.—MR