New York, December 31, 2025, 19:50 ET
Alphabet ended 2025 up about 66%, its best year since 2009, as investors warmed to Google's artificial intelligence efforts. The stock has rebounded from an April low of $144.70, and Wall Street has pointed to new search features like AI Overviews and AI Mode, built on the latest Gemini 3 model, as keys to keeping users within Google even as rivals like OpenAI's ChatGPT and Perplexity gain momentum. Barons
The end-of-year move is important because big technology companies are setting the tone for stock performance and investors are looking for companies to show that big spending on AI can lead to sustainable returns. A positioning reset is underway, with the market's focus shifting from what AI can do to what AI can gain.
U.S. stocks ended 2025 with double-digit gains, despite falling in the final session, as demand for AI-related stocks pushed major indexes toward yearly highs. “We expect this performance expansion to deepen in 2026, both domestically and internationally,” said Gitania Kandari, deputy chief investment officer of the Solutions Multi-Asset Group at Morgan Stanley Investment Management. Reuters
On the analyst side, Citizens JMP raised Alphabet's price target from $340 to $385 and maintained a “market outperform” rating, Market Beat reported. Price targets are analysts' estimates of where a stock will trade over the long term, and the new price target suggests an upside of about 23% from recent levels. market beat
Alphabet's surge stands out among the Magnificent Seven, a group of America's biggest tech stocks that dominate major indexes and represent investors' appetite for growth. While peers such as Apple and Microsoft have also been swept up in the AI industry, Alphabet's recovery is one of the most obvious stories for the second half of 2025.
The next question for Alphabet is execution. The question is whether AI capabilities can enhance search engagement and support advertising prices without costs significantly exceeding revenue. Investors are also paying close attention to regulatory risk, which has repeatedly been an overhang for the company.
As the year winds down, investors' attention is shifting away from giant stocks and toward smaller, more volatile names. Novavax was one of the most-watched tickers on the Zacks.com platform, according to a compilation of the research firm's Trending Stocks list by Yahoo Finance. Yahoo Finance
Novavax stock has returned about 1.9% over the past month, and the company is expected to lose about 66 cents per share on a quarterly basis, Zacks said. This number reflects the consensus estimate, which aggregates the forecasts of the analysts covering the company. Zack
Novavax stock continued to struggle in recent trading, dropping 1.47% to $6.72 on Tuesday, following moves by major drug companies such as Johnson & Johnson, Pfizer and Merck, according to MarketWatch. The stock was about 42% below its 52-week high and volume was below its 50-day average, according to the report. market watch
Novavax is best known as a vaccine developer, and its stock often trades based on changes in earnings estimates and regulatory headlines. This dynamic may attract retailers' attention, but it can also amplify moves when liquidity is thin.
For both Alphabet and smaller biotechs, the next catalyst will be a new direction as 2026 begins. Investors are looking at companies that can grow without outpacing costs. Meanwhile, year-end scoreboards show that AI-related narratives are still determining the direction of the market.
