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Alphabet's public market cap tops $1 trillion

Google's parent company Alphabet has become the latest high tech company to join the rarified $1 trillion stock market club.

Alphabet Thursday joined Apple, Amazon, and Microsoft as the only U.S. companies to ever be awarded such a lofty market valuation by investors.

The stock has been on a tear - up nearly 16 percent in just the past three months - outpacing the broader S&P 500 index.

Despite constant threats of a regulatory crackdown by Washington and the European Union - some investors just can't get enough of the world's leading online advertising platform.

Annual sales are expected to hit nearly $163 billion for fiscal year 2019, according to Refinitiv, a double-digit surge from fiscal year 2018.

Enamored by that kind of sales growth - Alphabet is just one of a small group of stocks found in the top holdings of both mutual funds and hedge funds - two types of large investors who hold different investment styles.

But others on Wall Street may be itching to hit the sell button.

Those shorting the stock, or betting the stock will fall, is near a 52-week high, on that basis, concerns about the stock are more intense than those of peers such as Microsoft and Facebook.

Besides a worry that Alphabet and the handful of tech stocks that have driven the market to record highs are too pricey...some Alphabet investors worry the search giant and parent of YouTube will have no choice but to spend more money in order to pre-empt any new regulations from Washington.

Higher spending equals less profit down the line. And there's one more concern.

Some investors worry that Alphabet may follow Amazon.com, which hit a $1 trillion market cap and then tumbled.

Investors will get a financial update from Alphabet when it releases fourth quarter and full year results on February 3.