2 Numbers Matter More to Alphabet Stock's Performance Than Anything Else Right Now

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) established its all-time high price in May. Since that peak, shares have fallen 15% (as of Sept. 11). The latest dip hasn't gotten in the way of what has been a fantastic run.

The Magnificent Seven stock has still soared 43% in the past 12 months. Over the past three years, the shares are up a noteworthy 150%. It can be mind-boggling to see a business of this scale continue to put up these kinds of outsize returns.

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To understand what's driving the momentum, investors should focus on two key numbers. I believe these data points matter more to the Alphabet thesis than anything else right now.

Find what you're looking for up in the clouds

Alphabet's overall business is in great shape. There's no doubt about it.

In the second quarter that ended June 30, Google Search posted 17% year-over-year revenue growth. The crown jewel segment deservedly gets a lot of attention.

Don't forget about YouTube. The leading video streaming platform registered a 13% top-line advertising sales gain. Subscriptions are growing faster.

However, I think the stock is mostly influenced these days by Google Cloud, the booming cloud infrastructure provider that is seeing tremendous success. It seems that the market is fully focused on its performance.

The first number that matters to investors is 82%. During Q2, this is how rapidly revenue for Google Cloud grew compared to the year-ago period. It was an acceleration from an impressive 63% increase in the first quarter. This division now represents almost 21% of Alphabet's entire revenue base, up from just under 11% exactly three years ago.

The second number investors probably care about most is $514 billion. As of June 30, this was the size of Google Cloud's backlog. It was up considerably from $462 billion just three months before. Of this huge sum, more than half is expected to be recognized as revenue over the coming 24 months. This is a clear indication of the robust demand there is from customers for the cloud products and services Alphabet offers.

Google Cloud puts Alphabet in a very advantageous position in the artificial intelligence (AI) boom. CEO Sundar Pichai touts the company's full-stack approach. "Our continued momentum is driven by our integrated AI portfolio consisting of chips, models, data, security, and agent platforms, all designed to work together," he said on the Q2 2026 earnings call.