Alphabet Surges With 65% Gain in Longest Rally Since 2009
Alphabet Beats Rivals With 65% Gain in Longest Rally Since 2009
(Bloomberg) -- Alphabet Inc. shares are poised for the longest string of monthly advances in over a decade as advertising revenue surges, driving them to the best returns among the nation’s megacap technology companies.
The shares rose 0.4% Monday to $2,891.81, an all-time high, pushing them to a gain of more than 7% in August. It will be the eighth straight monthly advance for the stock, the longest such rally since a 10-month streak in 2009.
The gains have left Google shares with a return of 65% this year, far surpassing other technology giants and pushing its market capitalization close to $2 trillion. Only Apple Inc. and Microsoft Corp. are worth more.
Alphabet has benefited from a widespread recovery in the market for digital ads. Last month, it reported second-quarter results that surpassed analysts expectations as revenue surged.
“The most recent quarter was quite positive, and highlights that what’s behind the price momentum is real fundamental momentum,” said James Abate, chief investment officer at Centre Asset Management, which owns the stock. “Unless we see a break in margins moving higher or in the sales momentum, we are willing to live with a valuation that might look high relative to history.”
Google’s advance has easily eclipsed the moves in the shares of other massive Internet and technology companies, as well as the broader market indexes. The S&P 500 Index and Nasdaq 100 Index are both up about 21% this year. Microsoft and Facebook Inc. have risen more than 36% each, while Apple is up about 15%. Amazon.com Inc. has been the laggard among those valued at more than $1 trillion, up about 5% in 2021.
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