New York time check: It’s 5:03 p.m. ET in New York on Friday, December 26, 2025—and the U.S. stock market has already closed for the day.
Alphabet’s Class C shares (NASDAQ: GOOG) finished the post‑Christmas session near $314.96, down about 0.22% versus the prior close, with trading continuing in the after-hours. In a thin, year‑end market that barely moved at the index level, investors are weighing a familiar Alphabet mix: AI-driven capex and infrastructure buildout, cloud momentum, and regulatory/antitrust headlines—alongside a calendar that now turns quickly toward the next earnings season.
As of the latest available trade following the close, Alphabet’s stock had a market cap of approximately $2.94 trillion with a price-to-earnings ratio of around 23.6. The post-Christmas trading environment was notably quiet, with broader indexes reflecting minimal movement.
The broader tape offered very little drama—typical for the day after Christmas, when volume is often light. The S&P 500 slipped 2.11 points to 6,929.94, the Dow fell 20.19 points to 48,710.97, and the Nasdaq Composite lost 20.21 points to 23,593.10. Reuters described markets closing near record levels in a muted session, while traders continue to watch for a potential “Santa Claus rally” as the year winds down.
In this context, Alphabet is navigating significant developments. One of the most consequential late‑December announcements is the company’s agreement to acquire Intersect for $4.75 billion in cash plus assumed debt, strengthening its energy and data-center infrastructure to support growing demands for AI and computing capabilities. Investors are noting that this acquisition is explicitly tied to powering AI and data center growth as demand strains U.S. power infrastructure.
Alphabet indicates that the transaction includes Intersect’s team and “multiple gigawatts” of projects currently in development or under construction. Furthermore, it was reported that Intersect has $15 billion of assets already operating or under construction, with expectations of about 10.8 GW online or in development by 2028. This strategic move underscores the ongoing necessity for companies in the AI sector to secure substantial energy resources.
In parallel, Google Cloud has landed what is described as its largest security services deal with Palo Alto Networks, committing a sum “approaching $10 billion” over several years. This partnership reflects the burgeoning demand for security solutions as AI technologies penetrate various sectors. Google Cloud Chief Revenue Officer Matt Renner stated, “AI has spawned a tremendous amount of demand for security,” while Palo Alto President BJ Jenkins emphasized the evolving landscape of AI-era security.
Moreover, Alphabet’s proposed acquisition of cybersecurity firm Wiz—reported at around $32 billion—has cleared a U.S. Justice Department antitrust review, though it still awaits approvals in other jurisdictions. This deal is viewed as significant for enhancing Google Cloud’s security capabilities, although it introduces potential integration risks.
In addition to growth opportunities, Alphabet faces legal challenges. A lawsuit filed by New York Times investigative reporter John Carreyrou and other writers accuses multiple AI companies, including Google, of using copyrighted materials without permission to train AI systems. This highlights the broader risks surrounding copyright issues in the rapidly evolving AI landscape.
On the regulatory front, Alphabet’s narrative has shifted from “breakup risk” to “behavioral remedies and compliance.” A judge ruled against forcing Google to sell its Chrome or Android assets, but ordered measures that may affect data-sharing and contracts, potentially impacting competition in search services. The U.S. Department of Justice has also indicated that remedies in the search monopolization case will touch on generative AI technologies.
As Alphabet navigates these developments, analysts remain broadly optimistic about the company’s trajectory. Truist recently raised its price target for the stock to $350, maintaining a buy rating, while other analysts suggest modest upside potential from current levels. Investors are keenly awaiting Alphabet’s next earnings report, scheduled for February 3, 2026, where expectations include insights into AI monetization improvements and clearer capex guidance.
As the market approaches the new year, the upcoming Fed minutes set for next week could influence investor sentiment. With the S&P 500 hovering near 7,000, any shifts in expectations regarding interest rates could lead to rapid re-evaluations of mega-cap tech valuations. For Alphabet, the focus on execution, capex discipline, and regulatory outcomes will be critical as it transitions into 2026.
In summary, Alphabet Class C shares are ending 2025 in a strong position amid a backdrop of significant growth and regulatory challenges. With its extensive market cap, robust cloud momentum, and a narrative that increasingly recognizes the strategic importance of infrastructure, Alphabet is poised for the upcoming year, although the execution of its ambitious plans will be closely scrutinized by investors.
For more details about Alphabet’s initiatives, visit their official website at Google.
See also
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