Google’s Best Year Since 2009 Signals AI Paying Off
We’ve reached the end of the year with an intriguing note. Alphabet finishes 2025 with momentum that’s hard to ignore. Google’s stock delivered its best annual performance since 2009, outpacing several megacap peers largely because the artificial intelligence narrative stopped being a promise and started showing up in product, margins, and cash flow. The rally wasn’t a late-year blip. Throughout 2025, analysts saw ad revenue regain traction, YouTube consolidate watch time and performance formats, and Google Cloud contribute growth with a more visible path to profitability. For investors, the turning point was translating AI advances into concrete, defensible services with a roadmap that fits the balance sheet. Taken together, that combination explains why Alphabet ended the year as one of the large-cap tech names with the strongest relative return.
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