Google is basically Nvdia (TPUs), Tesla (Waymo Self-Driving), Hyperscaler, Netflix (YouTube) and a massive VC (Anthropic, Databricks, SpaceX, etc.) all rolled into one.
Their valuation isn't really a 2x'ing so much as a reversion from halving.
Well, they're hoping to sell new services on expensive $200/month subscriptions.
The hope is that agents have more value than traditional software, because they do the work for you instead of just enabling you to do the work.
The market sets prices, and they are set based on multiple things. One of those is fundamentals. Consider the value of assets, whether tangible or intellectual property, human resources, binding contracts, etc. that add up to reasonable revenue forecasts and so forth.
And the other aspect of prices is based on conjecture, speculation, meme-joiners, believing hype, and in some cases, fraud.
The secret sauce is always going to be the one who can figure out, between the two factors going into price, what's right, and when.
BUT... just saying that all stock market pricing is based on unreliable factors? That's not a useful, actionable statement. You can certainly stay out of investing in that market, but is that going to be your best course of action?
Focus on cash/cashflow.
AI-related capex is one hell of a drug.