Alphabet (GOOGL) Stock: Google Tops Microsoft in Market Cap for First Time Since 2018

TLDR

• Alphabet’s market capitalization hit $3.62 trillion on Friday, surpassing Microsoft’s $3.51 trillion for the first time since 2018
• Alphabet stock has jumped 58% in 2025, fueled by strong earnings, AI developments, and a less severe antitrust ruling than expected
• Microsoft stock has risen 13% this year, matching the S&P 500 but stagnating since summer
• The shift places Alphabet behind only Nvidia and Apple in U.S. market value rankings
• Alphabet shares closed 3.5% higher Friday while Microsoft fell 1.3%

Alphabet closed Friday with a market cap of $3.62 trillion. Microsoft ended the day at $3.51 trillion.

That marks the first time since August 2018 that Alphabet has finished a trading session worth more than Microsoft. The gap between them now stands at roughly $110 billion.

Alphabet Inc., GOOGL

Alphabet shares rose 3.5% on Friday. Microsoft stock dropped 1.3%.

The new pecking order puts Alphabet in third place among U.S. companies by market value. Nvidia holds first place, followed by Apple in second.

Apple’s market cap sits at $4.01 trillion. That’s the next target if Alphabet keeps climbing.

What’s Driving Alphabet’s Run

The company’s stock has surged 58% in 2025. Three factors explain most of that move.

First, earnings came in strong. Revenue and profit both beat expectations in the third quarter.

Second, AI buzz helped. Alphabet launched a new Gemini AI model that got investors excited about the company’s position in the space.

Third, the antitrust ruling wasn’t as bad as feared. Federal courts ruled against Google’s search practices, but the remedies proposed were less harsh than many anticipated.

Alphabet has also handled the fall AI selloff better than peers. Shares are up 23% since October started.

The S&P 500 has fallen during that same stretch.

Microsoft stock tells a different story. Shares have gained 13% in 2025, matching the broader market.

But the stock has gone sideways since summer. No major catalyst has emerged to push it higher.

Market Cap Rankings Can Shift Fast

The $110 billion gap between Alphabet and Microsoft sounds big. In practice, it can disappear quickly.

Trading volume was light on Friday. Some analysts suggest the move was driven by sector rotation rather than a fundamental revaluation.

Market cap rankings change all the time. A few strong or weak sessions can flip the order.

Alphabet’s advertising revenue has recovered this year. Cloud services continue growing at a steady pace.

Microsoft faces profit-taking after years of outperformance. Some investors are rotating out of the stock and into other tech names.

The next wave of tech earnings will test whether this shift sticks. Both companies report results in the coming months.

Alphabet was recommended as a stock pick by Barron’s a year ago. That call has worked out well for anyone who followed it.

Friday’s close gives Alphabet a market value of $3.62 trillion compared to Microsoft’s $3.51 trillion.

The post Alphabet (GOOGL) Stock: Google Tops Microsoft in Market Cap for First Time Since 2018 appeared first on CoinCentral.