Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) made headlines recently with the revelation of a new position in Google parent company Alphabet (GOOG) (GOOGL). In its third-quarter 13F filing released on Nov. 14, Berkshire disclosed a new holding of 17,846,142 shares in Alphabet, valued at nearly $4.4 billion.
This move by Buffett comes at a time when Google’s shares have been performing exceptionally well, with an impressive 46% increase year-to-date and a 12% surge in just the past month. In fact, Google has emerged as the top-performing stock among the Magnificent 7.
Barchart’s 13-indicator “Opinion” rating system has given Alphabet a 100% “Buy” rating, which has remained consistent over the past week and month, indicating a strong bullish trend. Additionally, Google’s stock is currently trading above its 20-, 50-, 100-, and 200-day moving averages, providing confidence to both traders and long-term investors.
Furthermore, Google shares have received a Trend Seeker “Buy” signal, leading to a 10% increase in share price since the signal was issued on Oct. 15. Wall Street analysts also share a bullish view on Alphabet, with a “Strong Buy” consensus rating and an average price target of $315, suggesting a potential 14% upside over the next 12 months.
Google’s strong performance is further supported by its recent Q3 earnings report, which exceeded revenue estimates and showcased significant growth in its cloud segment. Despite increasing capital expenditures for AI infrastructure, Google managed to boost its earnings per share from $2.12 to $2.87 year over year.
In addition to Alphabet, Berkshire’s Q3 13F filing revealed larger positions in Chubb (CB), Sirius XM (SIRI), Lamar Advertising (LAMR), and Domino’s Pizza (DPZ), while trimming positions in Apple (AAPL), Bank of America (BAC), and DaVita (DVA).
As Berkshire’s nonagenarian CEO Warren Buffett prepares to step down from his role, the company’s investment managers Ted Weschler and Todd Combs are expected to play a more significant role in managing the equity portfolio. The extent of their involvement in the Q3 transactions and their future roles in a post-Buffett Berkshire remains unclear.
Overall, Berkshire’s strategic move to invest in Alphabet reflects confidence in the tech giant’s growth potential and solid financial performance. Investors and analysts alike are keeping a close eye on Google’s continued success in the market.
