Alphabet’s stock demonstrated an upward trend on Friday, with its share price increasing by 2.4% at 3 p.m. ET. In comparison, the S&P 500 rose by 1.5% and the Nasdaq Composite by 1.7%. Earlier in the session, Alphabet’s stock had climbed as much as 3.1%.
This week’s trading has been notably volatile, but the stock market seems to be concluding on a positive note. Although there were significant sell-offs the previous day, Alphabet’s stock has recovered some losses. Despite this recent gain, the company’s stock is still down approximately 17% for the year 2025.
The rise in Alphabet’s stock coincides with news of layoffs within its platforms and devices division, according to a report by The Information. While layoffs can often suggest broader business struggles, in this instance, investors perceive the move as Alphabet’s commitment to fiscal discipline amid a challenging macroeconomic environment.
The broader market also experienced recovery momentum on Friday, following Thursday’s sell-offs triggered by news of increased U.S. tariffs on Chinese imports, set at 145%, exceeding the 125% rate mentioned earlier by President Donald Trump. Despite the turbulence, Alphabet’s stock appears to end the week positively in light of a 90-day suspension of tariffs on countries other than China.
Looking forward, Alphabet is currently valued at around 17.4 times its anticipated earnings for the year. Considering the company’s recent performance in sales and earnings, along with its long-term growth prospects, it appears undervalued based on standard metrics. However, continued exposure to the Chinese market and ongoing macroeconomic instability may lead to further fluctuations in its stock price.
