Google Hits $4 Trillion Milestone

Hey Superheroes,

U.S. markets bounced back Thursday after two consecutive down sessions, with the Dow Jones Index climbing 0.6% as chip stocks rallied following blockbuster earnings from Taiwan Semiconductor. 

Bank earnings dominated headlines as Goldman Sachs and Morgan Stanley both beat expectations, though some financials remain under pressure from Trump’s proposed credit card interest rate caps. 

Let’s dive into this week’s biggest stories.

Google Hits $4 Trillion Milestone 

Alphabet (NASDAQ:GOOGL), Google’s parent company, briefly crossed the US$4 trillion market valuation threshold Monday, cementing its position as one of the world’s most valuable companies as its AI strategy delivers results.

The milestone makes Alphabet just the fourth company to reach US$4 trillion, joining Nvidia, Apple and Microsoft – all of which achieved the feat less than a year ago. Apple and Microsoft have since dipped back below that level.

Alphabet’s Class A shares climbed as much as 1.7% to hit a record US$334.07 on Monday, then moved even higher on Tuesday. The rally came hours after Apple revealed its next-generation AI models will be powered by Google’s Gemini technology under a multi-year partnership.

🤖 The AI strategy pays off 

The US$4 trillion valuation caps a remarkable turnaround in investor sentiment toward Alphabet. Shares surged roughly 65% in 2025, outperforming peers in Wall Street’s elite “Magnificent Seven” group of mega-cap tech stocks.

The company successfully addressed concerns that it had surrendered its early AI advantage to rivals like OpenAI. Alphabet transformed its once-overlooked cloud division into a significant growth driver and even attracted a rare tech investment from Warren Buffett’s Berkshire Hathaway.

Google Cloud revenue jumped 34% in the third quarter, with a backlog of unrecognised sales contracts climbing to US$155 billion. The company has boosted growth by renting its custom-developed AI chips – originally reserved for internal use – to external customers.

💰 Gemini drives partnerships 

Alphabet last week overtook Apple in market capitalisation for the first time since 2019, becoming the world’s second-most valuable company behind Nvidia.

The Apple partnership announcement represents a huge validation of Google’s Gemini AI model. Reports earlier this year indicated Samsung Electronics plans to double the number of mobile devices featuring AI capabilities powered by Gemini.

Meanwhile, Alphabet’s advertising business has remained stable despite intense competition. The ad division continues funding the company’s aggressive AI infrastructure investments.

Alphabet shares also benefited after a U.S. judge in September ruled against breaking up the company, allowing it to retain control of its Chrome browser and Android operating system.

Waymo Accelerates Sydney Robotaxi Plans 

Alphabet’s (NASDAQ:GOOGL) self-driving unit Waymo is advancing plans to launch robotaxis in Australia as early as this year, with Sydney emerging as the likely first market.

The Alphabet-owned company has begun searching for Sydney office space and held discussions with Chinese carmaker Geely about providing vehicles for an Australian driverless taxi fleet.

Waymo already operates partnerships with Geely’s Zeekr brand in the United States, though Zeekr declined to comment on potential Australian expansion. Geely’s portfolio includes the Zeekr, Polestar and Volvo brands.

🚕 The global robotaxi race 

Waymo finds itself locked in competition with Tesla to launch autonomous ride-sharing services in major cities worldwide. Both companies are targeting expansion in 2026, with Waymo planning launches in London, Denver, Las Vegas and New Orleans this year.

Waymo operates more than 25,000 commercial robotaxis across five U.S. states, completing roughly 450,000 paid rides weekly. The scale of operations gives Waymo a substantial lead over Tesla and Amazon, which runs smaller autonomous taxi services through its Zoox subsidiary.

Tesla (NASDAQ:TSLA) dominates semi-autonomous technology sold in consumer vehicles. Its Full Self-Driving software is already available in multiple countries including Australia, with Tesla claiming billions of kilometres of real-world testing data. Tesla uses camera-based systems rather than the Lidar radar technology employed by Waymo and Amazon.

🇦🇺 Navigating Australian regulations 

Neither Waymo nor Tesla has yet lodged applications that would allow fleet testing in Australia. The country lacks a national framework for automated vehicle safety, requiring companies to seek state-by-state approvals.

Transport for NSW confirmed it continues engaging with automated vehicle industry stakeholders alongside national reform development, though no specific testing applications have been submitted.

🔦 Some other things we’re shining the Spotlight on: 

CREDIT CARD STOCKS SLUMP ON TRUMP CAP: Capital One (NYSE:COF) and Synchrony Financial (NYSE:SYF) each dropped over 7% this week after President Trump proposed capping credit card interest rates at 10% for one year. Bank of America (NYSE:BAC) fell 6% and Citigroup (NYSE:C) declined 2.6% during the last 5 days amid broader regulatory uncertainty. It remains unclear how Trump would implement the proposed cap without Congressional approval.

JAMES HARDIE SHUTS U.S. PLANTS: Building products manufacturer James Hardie will close facilities in California and South Carolina within 60 days, targeting US$25 million in annual savings from FY27. The company expects one-time charges of US$40-44 million for severance and facility exits. CEO Aaron Erter said the moves will shift production to more modern plants.

ATLASSIAN ADDS GOOGLE VP TO BOARD: Atlassian appointed Google vice president Anil Sabharwal to its board effective February 1. Sabharwal spent 17 years at Google, founding the teams behind Google Photos and leading Chrome development. Rich Wong and Sasan Goodarzi retired from the board after 15.5 and 7.5 years respectively.

P.S. Please note that U.S. markets will be closed this coming Monday in observance of Martin Luther King, Jr. Day; regular trading will resume on Tuesday.

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