Alphabet Rolls Out $70 Billion Buyback but Analysts Stay Wary on Google Stock’s Forecast
Take General Motors GM +0.35% ▲ as an example. After struggling to convince investors its business was stable, GM bought back $22 billion worth of shares since 2023. That helped double its stock price. But there’s a catch—GM trades at just 4.3 times earnings for 2025. Alphabet, on the other hand, trades at 17 times earnings, which is cheaper than the S&P 500 average (21 times), but not bargain-bin cheap.
Compared to the rest of the Magnificent Seven, Alphabet looks like a deal. Tesla TSLA +10.04% ▲ trades at a jaw-dropping 120 times earnings. But cheap doesn’t always mean poised for growth.
Analysts Keep Alphabet on a Short Leash
Despite the buyback, some analysts are still waving the caution flag. Katie Stockton of Fairlead Strategies told Barron’s that Alphabet has “lost long-term momentum” and expects shares to be either range-bound or even in a bear cycle this year. Her outlook is based on technical analysis, meaning she’s reading stock charts, not the company’s balance sheet.
Here’s why that matters: if Alphabet can break past $180, where investors tend to sell, it might change the game. But unless that happens, this $70 billion buyback might act more like a floor than a launchpad.
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