Buffett Just Made a $37 Billion Bet on This Tech Giant. Should You Buy?

Buffett Just Made a $37 Billion Bet on This Tech Giant. Should You Buy? Vandita Jadeja Tue, August 25, 2026 at 5:00 PM GMT+2 4 min read GOOG BRK-B MSFT META GOOG Quick Read Buffett's $37 billion Alphabet (GOOG) stake validates our BUY rating and $437 price target, implying 28% upside with 90% confidence.

Alphabet (GOOG) trades at a P/E of 17, which is well below Microsoft (MSFT) at 27 and Meta (META) at 20, while growing revenue at a comparable rate. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Google didn't make the cut. Grab the names FREE today .

Berkshire Hathaway's roughly $37 billion stake in Alphabet, disclosed as a 48 million share position, has recalibrated how investors view the search giant. Warren Buffett rarely chases mega-cap tech, so his conviction here forces a fresh look at whether Alphabet ( NASDAQ:GOOG ) still offers meaningful upside from $344. 59.

Our 24/7 Wall St. price target for Alphabet is $437. 39 over the next 12 months, implying 27.

99% upside. We rate GOOG a buy with high (90%) confidence. An infographic on a dark background showing a 12-month price prediction for Alphabet Inc.

(GOOG). The current price is shown as $344. 59, with an arrow pointing to a target price of $437.

39, indicating a +27. 99% upside and a 'BUY' recommendation with 90% confidence. A bar chart titled 'How We Got There' displays prices: Trailing P/E-Based Price $341.

75, Forward P/E-Based Price $391. 65, and Analyst Consensus $422. 34, with a Weighted Base of $390.

88. Below, 'Our Adjustments' is shown as a waterfall chart, starting from a Weighted Base of $390. 88, adding +5.

4% for Strong Analyst Tilt, +3% for Earnings Acceleration, +1. 4% for Reddit Sentiment, subtracting -0. 5% for Geopolitical & Other Risks, resulting in a Final Target of $437.

39. The 'BULL CASE' section, marked with a green checkmark, lists positive factors like 'Cloud economics expanding (35. 6% operating margin)' and 'Gemini App 950 million users', with a target of $454.

48. The 'BEAR CASE' section, marked with a red X, lists negative factors like 'Capital intensity (Q2 CapEx $44. 92B)' and 'Negative Free Cash Flow ($5.

86B)', with a target of $361. 62. The bottom line reiterates 'BUY → $437.

39 (+27. 99%)', explaining that 'Alphabet's cloud, search, and AI monetization are compounding faster than the market implies, backed by Buffett's conviction. ' 24/7 Wall St.

Price Target Summary Metric Value Current Price $344. 59 24/7 Wall St. Price Target $437.

39 Upside 27. 99% Recommendation BUY Confidence Level 90% GOOG Price Target — 24/7 Wall St. What Alphabet's Post-Earnings Melt-Up Tells Us GOOG has climbed 7.

99% in the past month and 67. 17% over the past year, though shares sit below the $404. 23 52-week high.

The catalyst was a landmark Q2. Alphabet posted EPS of $9. 11 against a $3.

042 estimate, and revenue of $119. 8 billion, up 24. 23% year over year.

Google Cloud accelerated to 82% growth and backlog swelled to $514 billion. Buffett's disclosure validated the view that even at a $4 trillion market cap, GOOG trades at a reasonable multiple relative to its cash-generation engine. GOOG Earnings Explorer — 24/7 Wall St.

Why Bulls See a Breakout Ahead The bull case rests on cloud economics. Google Cloud operating margin expanded from 20. 7% to 35.

6% year over year, and management said just over 50% of that $514 billion backlog converts to revenue within 24 months. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Google didn't make the cut. Grab the names FREE today .

Gemini App's 950 million monthly users and Fortune 100 penetration of nearly 90% show Alphabet monetizing AI at scale peers cannot yet match. Our bull scenario puts GOOG at $454. 48 within 12 months if TPU system sales ramp as guided into 2027.

GOOG Analyst Ratings — 24/7 Wall St. What Could Go Wrong The bear thesis centers on capital intensity. Q2 CapEx hit $44.

92 billion, free cash flow swung to negative $5. 86 billion, long-term debt climbed to roughly $100 billion from $16 billion a year earlier, and the buyback was suspended. 2026 CapEx guidance of $175 billion to $185 billion is substantial, and every dollar of it flows to the power, cooling, and networking suppliers behind the data centers (we profiled seven of them in a free AI infrastructure report).

Bulls counter that this reflects a supply-constrained cloud opportunity backed by contracted demand. Our bear scenario points to $361. 62 if AI ROI slips.

Story Continues GOOG Price Scenario — 24/7 Wall St. How Alphabet Compares to Microsoft and Meta Microsoft ( NASDAQ:MSFT ) is the natural cloud comparison. MSFT trades at a P/E of 27 with a P/FCF of 54, versus GOOG's leaner trailing multiple.

Azure crossed $100 billion in annual revenue and Copilot passed 30 million paid seats, but investors already pay a premium for that. Meta Platforms ( NASDAQ:META ) is the ad-market comparable. META carries a P/E of 20 and Q2 revenue growth of 27.

96%, but its Q2 EPS missed by 14. 42% and free cash flow collapsed to $784 million. Alphabet's advertising engine grows at similar rates with cleaner monetization.

Against this peer group, our 24/7 Wall St. price target looks reasonable. Company P/E Q2 Revenue Growth Alphabet 17 24.

23% Microsoft 27 17. 75% Meta 20 27. 96% Alphabet Price Prediction 2026-2030 The 24/7 Wall St.

price target of $437. 39 with 90% confidence reflects a company where cloud, search, and AI monetization compound faster than the multiple implies. The setup strengthens if Google Cloud sustains 60%-plus growth and TPU revenue ramps in 2027.

It weakens if CapEx keeps outpacing operating cash flow into next year. On balance, Buffett's conviction and the numbers align. Year 24/7 Wall St.

Price Target 2026 $369 2027 $453 2028 $548 2029 $614 2030 $658 These projections assume Alphabet continues executing on cloud, search AI integration, and Waymo scaling. Meaningful upside or downside could result from an AI infrastructure ROI shock or a regulatory outcome in the Search antitrust remedy phase. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Google didn't make the cut.

Grab the names FREE today . Contact editorial@247wallst. com for any questions or corrections.