Google’s Twin Headlines: A Record Stock and a Wristband That Talks Back

Alphabet is enjoying a rare moment where its legal headaches are being drowned out by a chorus of bullish signals. The Google parent’s shares hit a fresh 52-week high of €339.45 on Friday, extending a year-to-date rally of 26% that has pushed the stock up nearly 147% over the past twelve months. That surge has come despite a new £3 billion class-action lawsuit in the UK, filed by law firm KP Law on behalf of British advertisers who accuse the company of abusing its dominance in online display advertising.

The complaint, which Google has dismissed as baseless, alleges that the tech giant favoured its own services and squeezed out competitors in the display ad market. It joins a growing list of regulatory battles: the European Union has already slapped Alphabet with a nearly €3 billion antitrust fine, while the US Department of Justice is pursuing its own appeal. For now, investors are brushing aside the litigation and focusing on the numbers that matter.

Cloud Earnings and a $190 Billion Bet

The first quarter told a compelling story. Revenue climbed 22% to just under $110 billion, while net profit surged 81%. The standout performer was Google Cloud, where sales jumped 63% as CEO Sundar Pichai credited enterprise AI solutions for the acceleration. The division’s backlog now stands at $460 billion, a figure that underscores the scale of demand Alphabet is racing to meet.

That race comes at a cost. Capital expenditure doubled in Q1 to $35.7 billion, and the company has lifted its full-year guidance to between $180 billion and $190 billion. CFO Anat Ashkenazi has signalled further increases in 2027. Shareholders are getting a direct cut of the spoils: the quarterly dividend was raised 5% to $0.22 per share.

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A Wristband With No Screen and Big Ambitions

While the financial headlines are dominated by cloud and capex, Alphabet is also making a play for your wrist. On May 26, the company will launch the Fitbit Air, a screenless fitness tracker priced at $99.99 that takes direct aim at WHOOP. The device is 25% smaller than the Fitbit Luxe and 50% smaller than the Inspire 3, with a battery that lasts up to seven days — five minutes of charging buys a full day of use.

The Air’s killer feature is the Google Health Coach, a Gemini-powered AI assistant that taps into personal tracking data to deliver context-aware advice rather than generic tips. The launch coincides with the rebranding of the Fitbit app to Google Health, and the device is the first Fitbit to sync with the Pixel Watch. A special edition co-developed with NBA star Stephen Curry will retail for $129.99, featuring enhanced airflow and a water-resistant coating.

The AI Story Extends Beyond the Cloud

The timing of the hardware push is no accident. Alphabet has cemented its reputation as a serious AI contender — in cloud infrastructure, custom chips, and now consumer devices. The Fitbit Air is designed to pull users deeper into the Google ecosystem, where the company’s AI capabilities can be monetised across multiple touchpoints.

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All eyes are now on the Google I/O developer conference on May 19 and 20, where management is expected to unveil further details on its AI roadmap. Google Health is likely to feature prominently, and the event could provide the next catalyst for a stock that shows no signs of slowing down.

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Alphabet Stock: New Analysis - 8 May

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