Alphabet Inc. (GOOGL) saw a significant rise in its stock price on December 16, 2024, closing at $196.66, up 3.6% from the previous close of $189.82. The stock opened at $192.88 and reached an intraday high of $199.00, driven by a surge in trading volume to 43,315,242 shares, which is 163.61% of its average. The upward momentum was fueled by several positive developments, including Jefferies' recognition of Alphabet as a key player in the AI software space, alongside Microsoft and Amazon. This endorsement, coupled with Barron's naming Alphabet as a top stock for 2025, bolstered investor confidence.
Additionally, regulatory news played a crucial role in the stock's performance. The incoming Trump administration's plan to relax car crash reporting requirements for autonomous vehicles is expected to benefit Alphabet's Waymo division, enhancing its growth prospects. The unveiling of new AI tools by Google DeepMind, Veo 2 and Imagen 3, further underscored Alphabet's commitment to expanding its AI capabilities, attracting investor interest. The combination of these factors, along with increased call option activity and institutional buying, contributed to the stock's robust performance.