Alphabet's Big Rally: Ranking The Magnificent 7

2026-01-26 09:50:47 ET

Alphabet Inc. ( GOOGL ) stock, also known as Google, is up 77% over the last year, and the gains are driven by several of the same market themes (e.g., the cloud, AI and ecosystem) fueling the “Magnificent 7’s” dominance versus the rest of the S&P 500 (SP500). Alphabet has been a stalwart position in my portfolios (especially since the overblown narrative that ChatGPT would overthrow Google’s search dominance), and I’m sharing this report to help readers formulate their own forward-looking opinions. Specifically, this report ranks the Mag 7, including a special focus on Alphabet, and then concludes with my strong opinion on portfolio positioning going forward.

Google’s Big Rally: The Mag 7 Megatrend Themes Making It Possible

For starters, Google shares have soared more than 77% over the last year (see table below), and the gains have been driven by many of the same overarching themes benefiting the Mag 7, such as:

• The Cloud : Over the last two decades, the incredible migration of data (from personal hard drives and company servers into the cloud—basically datacenters) has been spectacular. Companies that missed this trend (e.g., IBM ( IBM )) were left behind and companies that got ahead of it (first Amazon (AMZN), then Microsoft (MSFT) and Google) have capitalized incredibly.

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