Buffett's Major Investment in Alphabet
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy GOOGL?
Source: Fool
- New Investment Direction: Buffett purchased 17.8 million shares of Alphabet in Q3 2025 at an average closing price of $209.06 per share, with the current stock price exceeding $350, reflecting his strong confidence and long-term investment strategy.
- AI Potential: As one of the few companies capable of owning and monetizing AI globally, Alphabet's full-stack AI infrastructure and vast ecosystem allow it to rapidly distribute new AI features to billions of users, giving it a competitive edge.
- Strong Financial Performance: Analysts expect Alphabet's revenue and EPS to grow at CAGRs of 16% and 13%, respectively, from 2025 to 2028, indicating robust growth potential in the cloud and AI sectors.
- Reasonable Valuation: Despite Alphabet's stock price rising to $350, its P/E ratio stands at 26 times, suggesting it remains reasonably valued and comparable to many of Buffett's other top holdings.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to fall
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 384.800
Low
305.00
Averages
374.25
High
400.00
Current: 384.800
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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