Berkshire Just Loaded Up on Alphabet (GOOGL) Stock. Should You?
TLDR
- GOOGL opened at $344.17 on Wednesday, trading below its 50-day moving average of $352.87
- GCP posted $24.8 billion in Q2 revenue, up 82% year-over-year
- Q2 EPS came in at $9.11, well above the $2.89 consensus estimate; revenue hit $119.80 billion
- Berkshire Hathaway raised its GOOGL stake by 83% in Q2, bringing its holding to roughly 106 million shares worth about $37 billion
- Analyst consensus remains โBuyโ with a $419.86 average price target
Alphabet opened at $344.17 on Wednesday, sitting below its 50-day moving average of $352.87 but above the 200-day average of $341.28. The stock has had a flat August, and that sluggishness traces back to one thing: capex.
After Alphabet raised its AI capital spending plan from $180 billion to $205 billion in its Q2 earnings report, Wall Street got nervous. Overspending concerns have kept pressure on the stock, even as the underlying business numbers look strong.
Q2 results were hard to argue with. Alphabet reported EPS of $9.11, crushing the $2.89 analyst estimate. Revenue came in at $119.80 billion, ahead of the $117.07 billion consensus. Net margin stood at 54.77% and return on equity at 51.32%.
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