Ad News Live
Alphabet Stock Outlook 2025: Alphabet’s stock moved sharply higher on Monday after Warren Buffett’s Berkshire Hathaway announced it had taken a new position in the Google parent.
The move represents one of Berkshire’s biggest technology investments in recent years.
Alphabet shares gained almost 4% in premarket trading. They also stood out by rising while most other tech names slipped at the start of the week.
A new 13F filing shows that Berkshire held about $4.3 billion in Alphabet shares as of September 30. That stake now sits among the firm’s ten largest equity positions.
The move surprised many who follow Buffett closely, as he has spent decades avoiding high-growth tech companies.
He has long viewed Apple — Berkshire’s biggest investment — as more of a consumer brand than a pure technology company.
The Alphabet stake was most likely picked by one of Buffett’s top deputies, Todd Combs or Ted Weschler. Both have taken on a growing role in managing Berkshire’s $300 billion portfolio.
The size of the investment also points to Buffett’s approval, even as he prepares to step down as CEO later this year.
Combs and Weschler have guided many of Berkshire’s tech-oriented bets, including the Amazon position they started in 2019. Berkshire still holds about $2.2 billion in Amazon shares today.
Alphabet has emerged as one of the year’s standout stocks. Its share price has climbed 46% as investors reward the company’s rapid progress in AI and its stronger cloud business.
Google Cloud, once a drag on margins, has now become a major contributor to earnings.
A Shift in Leadership?
Bill Stone, the chief investment officer at Glenview Trust Company, said the Alphabet investment may hint at a broader embrace of tech as Berkshire moves into a new era of leadership.
“Maybe this Alphabet purchase shows they’re expanding their circle of competence into technology,” Stone said.
Greg Abel, Buffett’s trusted deputy, will step in as CEO this January. Buffett, now 95, will continue to serve as chairman of the board.
Alphabet has delivered a strong rally in 2025, yet its valuation still sits below many of its AI-heavy megacap rivals.
The stock trades at 25.5 times next year’s earnings. Microsoft is at 32.0, Broadcom at 50.8, and Nvidia at 41.9, according to FactSet.
That lower valuation, paired with Alphabet’s huge cash flow and dominant position in the market, likely made the stock an appealing choice for Buffett’s team.
Buffett has often said that passing on Google was one of his biggest investing errors. He had every reason to see its promise.
Geico, Berkshire’s auto insurance business, was one of Google’s first major advertisers. In those early days of online search ads, Geico paid about $10 each time a user clicked one of its links.
“I saw how the product performed, and I understood the margins they were earning,” Buffett said in 2018.
“But I didn’t know enough about technology to feel confident that this was the company that would stay ahead of the competition.”
Follow Us
AD News Live
