Google's parent company, Alphabet, has finally surpassed the $2 trillion market cap level. Late in the day, the tech giant's market cap momentarily surpassed $2 trillion, closing at $ 2,987.03 per share.

Since last year, Alphabet's market capitalization has grown from $1 trillion to $2 trillion. Alphabet has officially joined Apple and Microsoft in the $2 trillion club in the US.

Alphabet posted record revenue of $61.9 billion in the July-September quarter, as well as record earnings of $18.9 billion.

Its Class A shares rose as much as 1.2 percent to an all-time high before fading to a 0.1 percent gain, just missing the 1.2 percent milestone. Alphabet has outperformed the five biggest U.S. tech firms in terms of revenue this year, with a 70 percent gain powered mostly by the rise of Google's advertising unit.

It indicated late last month that it expects almost no impact from foreign exchange on reported revenues in Q4, compared to a 1.5 percent tailwind in Q3 and four percent in Q2.

Last year, Apple surpassed the $2 trillion milestone, while Microsoft did likewise in June of this year. Amazon is also on its way to surpassing $2 trillion in market capital.

Microsoft is now worth slightly more than Apple, making Satya Nadella's cloud computing behemoth the most valuable firm on the planet. Both companies have a combined value of $2.5 trillion.

Tesla, Elon Musk's electric car company, just surpassed the $1 trillion milestone and has now risen to almost $1.25 trillion in market cap.

These five companies are now valued about $10 trillion as a group. That's over a fifth of the S&P 500's total market cap of $41.8 trillion.

Alphabet is cheaper than Amazon.com Inc. and Microsoft, but more expensive than Facebook parent Meta Platforms Inc. at approximately 24 times forward earnings. Although RBC Capital Markets analyst Brad Erickson believes the stock's multiple already bakes in enough optimism, he remains positive on Alphabet and believes it is ‘packed for a reason’.

“We see solid reasons to purchase the name given the notably appealing COVID-19 rebound exposure, ever-rising YouTube engagement and monetization, and GCP's march toward profitability”, Erickson wrote.

According to David Kalis, partner of Future Fund LLC, Alphabet's future share price improvements will be driven by ongoing earnings growth. According to Kalis, the stock is the Future Fund Active ETF's second-largest holding.

Word on the street says that the company's profits per share is predicted to reach almost $130 in 2023, or quadruple the $44 EPS achieved in 2018. According to Kalis, Alphabet's cloud division is the sector of the company that the market undervalues the most.