Why Alphabet Stock Is Gaining Today

Motley Fool
12 Apr
  • Alphabet stock is rising today thanks to positive momentum for the broader market.
  • Alphabet also reportedly laid off hundreds of workers recently, and investors may be happy about the cost-savings news.
  • The stock looks cheaply valued by traditional metrics right now, but economic uncertainty suggests shares could continue to be highly volatile.

Alphabet (GOOGL 2.77%) (GOOG 2.50%) stock is rising Friday. The tech giant's share price was up 2.4% as of 3 p.m. ET amid a 1.5% gain for the S&P 500 and a 1.7% a gain for the Nasdaq Composite. The stock had been up as much as 3.1% earlier in the daily session.

The stock market has seen a historically volatile stretch of trading this week, but it appears to be poised to end the stretch on something of a high note. After substantial sell-offs yesterday, Alphabet stock is regaining some ground -- but it's still down roughly 17% across 2025's trading.

Alphabet is rising amid layoff news and rebound momentum for the market

The Information reported today that Alphabet recently laid off hundreds of workers at its platforms and devices segment. While layoffs can sometimes be an indication that a business is struggling overall, that's probably not the case here. Instead, investors seem to be moderately positive on the news because it signals that Alphabet is taking a fiscally disciplined approach amid an uncertain macroeconomic outlook.

The broader market is also seeing recovery momentum Friday on the heels of yesterday's sell-offs on news that U.S. tariffs on imported goods from China would be set at 145% -- ahead of the 125% import tax rate that was mentioned by President Donald Trump on Wednesday. It's been an incredibly wild week for stocks, but Alphabet looks poised to end the week solidly in the green thanks to news that tariffs on all countries except China have been suspended for 90 days.

What's next for Alphabet?

Following market volatility this year, Alphabet is now valued at approximately 17.4 times this year's expected earnings. Given the company's recent sales and earnings momentum and long-term growth potential, the company looks cheaply valued by conventional metrics. But business exposure to the Chinese market and macroeconomic uncertainty suggests that shares could continue to see volatile trading in the near term.

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