Shares of Alphabet Inc. (GOOGL), the tech giant behind Google, are rising today after Warren Buffett’s Berkshire Hathaway (BRK.B) disclosed a $4.3 billion investment in the tech giant. Investors responded positively, viewing the move as a major endorsement of Google’s long-term growth potential. GOOGL stock is up by over 5% in the pre-market hours on Monday. Year-to-date, the stock has gained over 45%.
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What Buffett’s Investment Means for GOOGL Investors
Berkshire Hathaway’s Q3 2025 regulatory filing reveals a new stake of 17.85 million Alphabet shares, worth roughly $4.3 billion. This represents 1.6% of Berkshire’s total portfolio.
For investors, Warren Buffett’s investment in Alphabet signals strong confidence in GOOGL’s long-term fundamentals. It further highlights the company’s robust free cash flow, dominant digital advertising business, growing cloud segment, and emerging AI capabilities. Additionally, Berkshire’s move suggests that even amid concerns of an AI-driven stock bubble, Alphabet’s durable economics and competitive position make it a solid long-term holding.
A Shift in Berkshire Strategy
Buffett has mostly steered clear of technology stocks, preferring cash-steady, durable businesses. However, this move marks a notable shift for Berkshire, which has historically focused on banking, energy, and insurance. Buffett has also acknowledged missing early opportunities in tech giants like Google, making this investment particularly significant.
Recently, the tech giant’s strong Q3 results boosted its performance. The company’s earnings per share came in at $2.87, surpassing analysts’ estimate of $2.26. Meanwhile, revenue rose 16% to $102.35 billion, also exceeding expectations of $99.94 billion. The impressive performance may have reinforced Buffett’s investment, signaling confidence in the company’s long-term fundamentals and growth potential.
Is Google Stock a Buy?
According to TipRanks, GOOGL stock has received a Strong Buy consensus rating, with 30 Buys and seven Holds assigned in the last three months. The average GOOGL stock price target stands at $312.29, implying a 12.98% upside from the current price.
