Key Stats for Alphabet Stock
- Pre-market price Change for Alphabet stock: 4%
- $GOOGL Share Price as of Nov. 14: $276
- 52-Week High: $292
- $GOOGL Stock Price Target: $318
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What Happened?
Alphabet (GOOGL) stock is up 4% in pre-market following news that Warren Buffett’s Berkshire Hathaway purchased 17.8 million shares during the third quarter, establishing a $4.3 billion position in the Google parent company.
Alphabet is now Berkshire’s 10th largest equity holding and represents a surprising shift for the legendary value investor who has historically avoided high-growth tech names.
The purchase is notable given Buffett’s famous regret about missing Google’s early days. Back in 2018, the Oracle of Omaha admitted he “blew it” by failing to invest when he had direct insight into Google’s advertising potential through Geico, Berkshire’s auto insurance unit that was an early customer paying $10 per click for ads.
“I had seen the product work, and I knew the kind of margins [they had],” Buffett said at the time. “I didn’t know enough about technology to know whether this really was the one that would stop the competitive race.”
The late Charlie Munger, Buffett’s longtime partner, also expressed regret in 2019, saying he felt “like a horse’s ass for not identifying Google better. I think Warren feels the same way.”
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What the Market Is Telling Us About GOOGL Stock
The ongoing jump in GOOGL stock reflects investor enthusiasm that one of the world’s most successful investors is finally placing a significant bet on Alphabet after years of publicly regretting missing the opportunity.
The timing is interesting given Wall Street’s months-long anxiety about whether the artificial intelligence boom represents a bubble about to pop.
Berkshire’s move suggests confidence that AI investments will translate into sustainable revenue and profits despite the massive capital expenditures required.
Alphabet, Amazon, Meta Platforms, and Microsoft are collectively spending hundreds of billions of dollars annually on AI infrastructure, with Morgan Stanley estimating AI hyperscalers plan to deploy roughly $3 trillion on data centers and related infrastructure through 2028.
The investment was likely made by Berkshire lieutenants Todd Combs or Ted Weschler rather than Buffett himself, given their more active approach to technology stocks.
One of them initiated Berkshire’s Amazon position back in 2019, and the conglomerate still holds $2.2 billion worth of AMZN stock.
With Buffett stepping down as CEO by year’s end, successor Greg Abel could also have played a role in the decision.
Last week, Buffett announced he’ll be “going quiet” and will no longer write Berkshire’s annual report or talk “endlessly” at shareholder meetings, creating uncertainty about the conglomerate’s future investment approach.
Alphabet’s third-quarter earnings released last week showed why GOOGL stock has been the market’s standout winner this year, with shares rallying 46%.
The company delivered its first-ever quarter of $100 billion in revenue, driven by double-digit growth across every major business segment.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
