With shares up by a healthy 59% over the last 12 months, (NASDAQ: GOOG) (NASDAQ: GOOGL) stock is posting a healthy recovery after the slump it experienced in 2022. Like many technology companies, it is unwinding pandemic-era overexpansion while pivoting to new opportunities in generative artificial intelligence (AI). Let's discuss how the stock might perform over the next five years.

Initially, the COVID-19 pandemic led to a boom for Alphabet as consumers spent more time online during the lockdowns and other restrictions. But the good times led to overexpansion as the company raced to enlarge its workforce. When demand softened, it was left with weaker margins and the need to make big changes.

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Source Fool.com