Dec. 20, 2025 — Alphabet Inc.’s Class C shares (NASDAQ: GOOG) head into the weekend with investors focused on a concentrated set of catalysts: a blockbuster Google Cloud cybersecurity partnership, a renewed push to make Google’s in-house AI chips more attractive to enterprise customers, and a steady drumbeat of analyst price-target updates. With U.S. markets closed Saturday, the most recent regular-session reference point is Friday’s close: GOOG ended Dec. 19 at $308.61, up 1.60% on the day, after trading between roughly $302 and $309 with above-typical volume. [1]
This article focuses on Alphabet’s Class C stock (GOOG)—the non-voting share class. Alphabet’s charter states that Class C shares have no voting power (except as required by law), while Class A shares (GOOGL) carry voting rights. Economically, the two publicly traded share classes generally track closely because they represent the same underlying business and cash-flow exposure. [2]
Below is what matters most for GOOG right now—the latest news flow, current forecasts, and the key debates shaping analyst and investor expectations as of 20.12.2025.
GOOG stock snapshot: where Alphabet stands heading into the weekend
Alphabet’s late-2025 rally has turned the company into a market-cap heavyweight again. Recent reporting and market commentary put Alphabet at roughly $3.7 trillion in market value in December, positioning it among the top handful of global companies. [3]
From a pure price-action perspective, GOOG remains close to recent highs: Market data coverage this week referenced a 52-week high near $328.67 (set in late November), with the stock trading below that level during mid-December. [4]
Valuation remains part of the conversation. Investing-focused market data pages list Alphabet at about 30x earnings on a trailing basis (figures vary by provider and update cadence), which frames how investors weigh Alphabet’s accelerating AI and cloud ambitions against intensifying regulatory and capital-spending pressures. [5]
The biggest GOOG headline this week: Google Cloud’s security partnership with Palo Alto Networks
The most concrete, revenue-linked catalyst in the last 48 hours is the expanded Google Cloud–Palo Alto Networks partnership.
- Reuters reported the deal is “approaching $10 billion” over multiple years, calling it Google Cloud’s largest-ever security services deal, based on a source familiar with the agreement. [6]
- Palo Alto Networks’ own announcement described the collaboration as an expanded partnership focused on AI-powered security and deeper cloud integration, reinforcing the message that the relationship is meant to be long-duration and product-driven rather than a one-off marketing tie-up. [7]
- Channel and enterprise IT analysis highlighted how the partnership lands at a strategically important moment for Google Cloud—especially with Alphabet pursuing cybersecurity scale (including its pending $32 billion Wiz acquisition), and with generative AI reshaping the threat landscape and security budgets. [8]
Why it matters for GOOG:
Security is increasingly a “must-have” buying criterion for cloud migrations and AI deployments. A multi-year arrangement of this size (if the Reuters-reported figure is close) signals that Google Cloud is competing not only on compute and models, but also on enterprise-grade security integration—an area where AWS and Microsoft have long built durable moats.
It also reinforces a market narrative that Alphabet’s AI push is not just about consumer products (Search, YouTube, Android), but also about enterprise revenue visibility—the type of story that often supports higher valuation multiples when margins are credible.
Alphabet’s AI infrastructure strategy: Google + Meta move to weaken Nvidia’s “software moat”
Another key driver of investor attention is Alphabet’s effort to make its AI chips easier to adopt.
Reuters reported that Google is working on an internal initiative dubbed “TorchTPU” to improve how well Google’s TPUs run PyTorch, the dominant AI development framework, and that Google is collaborating with Meta—a major PyTorch backer—to accelerate compatibility. [9]
Why this matters for GOOG investors:
- TPUs become “less niche.” A major friction point for TPU adoption has been developer tooling and ecosystem compatibility. If PyTorch runs cleanly on TPUs, more teams can migrate without rewriting large parts of their stack. [10]
- Cloud differentiation and margin potential. If customers can more easily choose TPUs inside Google Cloud (or even on-prem via TPU offerings), Alphabet has a stronger chance to capture AI infrastructure dollars while potentially improving unit economics versus purely renting third-party GPUs. [11]
- A direct challenge to Nvidia’s lock-in. Nvidia’s advantage isn’t just hardware; it’s the software ecosystem surrounding CUDA. Reuters’ framing is explicit: Google’s goal is to erode that software advantage by meeting developers where they already are—PyTorch. [12]
Separately, Reuters has also reported that Meta has explored spending billions on Google’s chips in future years, which—if it ever materializes—would be a high-profile validation of Google’s accelerator strategy. [13]
Waymo’s “hidden value” is back in focus with funding talks and a $100B+ valuation discussion
Alphabet’s autonomous-vehicle unit is once again influencing the “sum-of-the-parts” conversation around GOOG.
Reuters reported that Waymo is in talks to raise billions of dollars at a valuation of at least $100 billion (with some reporting suggesting even larger figures), and noted that Waymo operates what Reuters described as the only fully driverless, paid robotaxi service in the U.S. [14]
Why it matters for GOOG:
- If Waymo’s valuation resets higher in private markets—or if Alphabet leads a major round—investors may attribute more explicit value to Waymo within Alphabet’s overall market cap, even without a near-term IPO. [15]
- A large Waymo round would also keep the spotlight on capital requirements, timelines to profitability, and the competitive landscape (including Tesla’s autonomous ambitions). [16]
Regulatory pressure remains a real risk for Alphabet stock: U.S. default-search contracts and global antitrust
Even as AI optimism builds, Alphabet’s regulatory overhang hasn’t disappeared. Several developments are shaping sentiment into year-end:
1) U.S. default placement contracts: a one-year limit
Business Insider reported that a federal judge ordered Google to limit contracts that make its search engine (and AI app) the default on devices to a maximum of one year, forcing more frequent renegotiation and potentially giving rivals more shots on goal. [17]
Bloomberg also reported a similar framing around the one-year limitation. [18]
Stock relevance: Default placement has historically supported distribution scale—especially on mobile. Compressing contract durations can raise traffic acquisition and retention costs over time if competition intensifies.
2) Mexico’s Android-related antitrust decision
Reuters reported Mexico’s antitrust body concluded a case ordering that Google cannot impose the use of Android on mobile device manufacturers as a condition for access to its services. [19]
3) Europe: potential fines and AI-era competition concerns
Reuters reported Google could face an EU fine next year tied to allegations it didn’t do enough to comply with EU rules against favoring its own services in search results. [20]
Meanwhile, The Verge reported the EU has opened an antitrust investigation tied to concerns about AI features (including AI Overviews / AI Mode) and the use of publisher and creator content, raising questions about traffic flows and compensation models. [21]
Bottom line: For GOOG investors, regulation isn’t a headline risk—it’s a core variable in the long-term model, because it touches distribution, monetization mechanics, and the structural durability of Google Search economics.
Wall Street forecasts for GOOG: where price targets cluster heading into 2026
Analyst optimism remains broadly intact, but it’s become more differentiated—some firms view GOOG as fairly valued after the 2025 run, while others see a longer AI-driven runway.
What the consensus looks like (based on widely circulated summaries)
A Nasdaq-hosted Fintel summary of analyst forecasts for Alphabet (GOOG) stated:
- Average one-year price target:$317.81
- Range:$187.30 to $421.02
- Implied upside from the referenced close (~$308.60): about 2.98% [22]
That “low single-digit upside” framing explains why some short-term takes have shifted from “deep value” to “execution story”: after a powerful 2025 move, GOOG can still outperform—but the market increasingly demands proof via cloud growth, AI monetization, and disciplined spending.
Notable bullish targets tied to AI-search engagement
Barron’s reported that TD Cowen analyst John Blackledge raised Alphabet’s price target to $350, pointing to increased usage of Gemini, AI Mode, and AI Overviews as drivers of search engagement and future growth. [23]
The more aggressive bull case
Barron’s also highlighted a bull-case target of $400 from Pivotal Research, which argued Alphabet could keep climbing from current levels. [24]
More tempered upgrades still happening
MarketBeat coverage this week summarized multiple analyst updates—such as Sanford C. Bernstein raising its target (while keeping a more neutral-style rating) and Guggenheim reiterating a bullish rating with a higher target. (These summaries often track the Class A listing, but the fundamental thesis generally carries across to GOOG.) [25]
What to take from the forecast spread:
The dispersion—roughly “low $300s” consensus with bull cases stretching into the $350–$400 range—signals that analysts broadly agree Alphabet is executing well, but differ on (a) how durable AI-driven growth will be, and (b) how much margin pressure capex and infrastructure costs will create.
Alphabet fundamentals: the results investors are anchoring to
Alphabet’s most recent quarterly report provides the baseline for many of today’s price targets and models.
In its Q3 2025 earnings release, Alphabet reported:
- Revenue of $102.3 billion, up 16% year over year (15% in constant currency). [26]
- Google Services revenue up 14% to $87.1 billion. [27]
- Google Cloud revenue up 34% to $15.2 billion, driven by core products, AI infrastructure, and generative AI solutions. [28]
- EPS of $2.87, with net income up 33% and EPS up 35% year over year. [29]
- A higher 2025 capex outlook: Alphabet said it expected 2025 capital expenditures in a range of $91 billion to $93 billion, citing demand from Cloud customers. [30]
Alphabet also reiterated its newer shareholder-return posture: the earnings document references a quarterly cash dividend of $0.21 payable to stockholders across share classes, underscoring that income-oriented investors now have a (small) yield component alongside buybacks. [31]
Why these fundamentals matter for GOOG right now:
- The market is rewarding Google Cloud’s growth, but it’s also watching for operating leverage—whether cloud growth can translate into durable margin expansion while AI capex stays elevated.
- Alphabet’s willingness to spend aggressively on AI infrastructure is a double-edged sword: it protects competitiveness, but it also raises the bar for monetization across Search, Cloud, and YouTube.
The “prediction markets” signal investors are talking about on 20.12.2025
One of the more unusual sentiment datapoints circulating today comes from prediction markets.
MarketWatch reported that on Polymarket, the odds of Alphabet becoming the world’s largest company by market cap by December 2026 rose into the low-30% range, close behind Nvidia in that market’s pricing. [32]
Polymarket’s own event page shows Alphabet and Nvidia as the two leading outcomes, with probabilities moving dynamically. [33]
How to interpret this (carefully):
Prediction markets can reflect crowd sentiment and narratives (in this case, “Alphabet as an AI infrastructure winner”), but they are not fundamentals-based valuation models. Still, they highlight how strongly the market is associating Alphabet with the AI compute stack—models, chips (TPUs), and cloud distribution—in addition to advertising.
GOOG outlook for 2026: the bull case, the bear case, and what to watch next
The bull case for Alphabet Class C stock
- Google Cloud scales into a bigger profit engine. The Palo Alto partnership and the Wiz acquisition push suggest Alphabet wants security to be a differentiator—one that drives larger enterprise migrations and higher retention. [34]
- TPUs become a real alternative in the AI gold rush. Better PyTorch support could make it materially easier for customers to deploy on Google infrastructure and reduce reliance on Nvidia. [35]
- AI-enhanced Search strengthens engagement. Several analysts have turned more constructive on Search again, arguing that Gemini features and AI Overviews can lift usage—supporting long-term monetization even amid format changes. [36]
- Waymo optionality becomes more “priced in.” A large funding round at $100B+ would reinforce the idea that Alphabet owns multiple large businesses, not just Search + YouTube. [37]
The bear case (and what could break the narrative)
- Regulation disrupts distribution economics. One-year limits on default deals and ongoing global antitrust actions can raise costs or reduce the durability of Google’s default advantages. [38]
- AI capex pressure outpaces revenue gains. Alphabet’s capex guidance underscores the scale of spending required to keep up. If revenue doesn’t ramp fast enough, margins can compress. [39]
- Search monetization changes faster than advertiser budgets adapt. AI answers can change click behavior and ad formats. Even if engagement rises, the transition risk is real—especially if regulators and publishers push back on traffic and content usage. [40]
The next major catalyst: earnings season
Market calendars widely estimate Alphabet’s next earnings report for early February 2026 (exact timing can change until confirmed). MarketBeat’s earnings calendar, for instance, estimates Feb. 3, 2026 for the next report based on past schedules. [41]
Yahoo Finance’s earnings calendar similarly lists early February timing for Alphabet’s next report. [42]
Final take: why GOOG is still in focus on 20.12.2025
Alphabet Class C stock is ending 2025 with an unusually dense mix of narratives:
- Near-term, tangible enterprise momentum (Google Cloud’s Palo Alto expansion) [43]
- Medium-term platform strategy (TPUs + PyTorch compatibility to broaden AI infrastructure adoption) [44]
- Long-term optionality (Waymo valuation discussions and funding talks) [45]
- Persistent structural risk (antitrust remedies and global competition scrutiny) [46]
For investors, the core question going into 2026 is simple: Can Alphabet convert its AI “full-stack” story—models, chips, cloud, and distribution—into sustained revenue growth without surrendering too much margin to infrastructure and regulation? Wall Street’s targets suggest cautious optimism, but after a strong 2025 run, the stock’s next leg likely depends more on execution than excitement. [47]
References
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