Why Alphabet Class C Looks Cheap Despite $4T Valuation

Alphabet Class C ( (GOOG) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Alphabet Class C continues to attract bullish attention on Wall Street, even as its valuation looks stretched at first glance. The stock has climbed about 7% since the start of the year and roughly 70% over the past 12 months, pushing Alphabet’s market capitalization above $4 trillion. Yet options-market dynamics indicate that, on a volatility basis, Alphabet Class C may actually be trading at a discount. Heavy demand from sophisticated investors for downside protection via in-the-money put options has pushed put premiums higher, leaving out-of-the-money call options relatively cheap. Analysts using volatility tools, Black‑Scholes projections, and Markov-based pattern analysis argue that this skew favors contrarian bullish strategies, such as targeted bull call spreads around the $347.50–$350 range ahead of February expirations. Wall Street sentiment remains firmly positive, with a Strong Buy consensus and an average price target near $347.70, implying modest further upside.

At the same time, Alphabet Class C is managing legal and regulatory risks that continue to shadow big tech. Google has agreed to pay $135 million to settle a class-action lawsuit alleging that Android devices improperly sent users’ cellular data to the company even after apps were closed or location services were disabled. While denying wrongdoing, Google opted to settle and pledged to change how Android handles data transfers, requiring explicit consent during setup, simplifying opt-out settings, and clarifying the practice in Google Play’s terms of service. The deal, touted as the largest “conversion” settlement to date, caps individual payouts at $100 but allows plaintiffs’ lawyers to seek nearly $40 million in fees. For investors, the settlement underscores ongoing privacy scrutiny but does not appear to have dented the broader bullish thesis on Alphabet Class C shares, which remain supported by strong analyst ratings and favorable options pricing for upside exposure.