Alphabet stock holds near all-time high as AI valuation debate tempers optimism

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Sholanke Dele

18.11.2025

Alphabet stock holds near all-time high as AI valuation debate tempers optimism — Alphabet gained 0.46% premarket

Alphabet Inc. [GOOGL] stock advanced on Tuesday, November 18, extending its early-week gains after Berkshire Hathaway’s recent investment continued to boost investor confidence in the tech giant’s long-term value proposition. On Monday, Alphabet’s shares surged over 6% to a record high at $294 before closing lower at $285, still securing a 3% daily gain. The rally came as Berkshire’s filing revealed a $4.93 billion stake in Alphabet as of September 30, a move interpreted by market participants as a strong endorsement from Warren Buffett’s conglomerate despite widespread concerns over an AI valuation bubble.

- Alphabet gained 0.46% premarket after Berkshire’s $4.93 billion stake boosted investor confidence.

- CEO Sundar Pichai warned no company is immune to possible AI market correction.

- A golden crossover above $283 supports GOOGL bullish bias toward another $294 record test

In Tuesday’s premarket session, GOOGL stock edged 0.46% higher, trading slightly above the previous day’s close. The modest gain reflected a shift in investor expectations following the release of delayed U.S. Unemployment Claims data, which showed signs of labor market softening. Jobless claims rose to 232,000 from 218,000 previously, highlighting potential cooling in employment conditions. This development has rekindled speculation that the Federal Reserve might eventually be pressured to consider policy easing, a factor that tends to favor large-cap growth and technology stocks like Alphabet, given their sensitivity to borrowing costs and liquidity conditions.

Alphabet price dynamics (Oct - Nov 2025). Source: Tradingview

Despite the optimism surrounding Berkshire’s stake, comments from Alphabet CEO Sundar Pichai on Tuesday introduced a tone of realism to the discussion around AI valuations. In an interview, Pichai acknowledged that the current wave of AI investment is an “extraordinary moment” but cautioned that “no company would be unscathed” if the boom unwinds. His comments mirrored past warnings of “irrational exuberance,” recalling the sentiment from the dot-com era when inflated valuations led to market corrections. The remarks added nuance to investor enthusiasm, suggesting that while Alphabet is well-positioned within the AI ecosystem, broader sector volatility remains a risk factor.

Alphabet momentum sustained by golden crossover as investors weigh jobs data

Adding to the cautionary backdrop, regulatory filings indicated ongoing insider share sales. On November 17, Chairman of the Board John L. Hennessy reported a planned sale of 600 shares at $280.06, valued at approximately $168,034. This followed earlier share disposals from Alphabet directors and affiliated institutional holders such as MDC Trust I, signalling that top executives may be capitalizing on the stock’s strong performance.

From a technical perspective, the 1-hour chart shows that the 20 EMA has crossed above the 50 EMA at $283, forming a golden crossover pattern. This short-term signal typically indicates potential for continued upside momentum and could help prevent deeper pullbacks below the $283 level. If bullish sentiment holds, the stock may attempt another breakout above the $294 record high, while sustained closes below $283 could shift near-term momentum back toward the $275–$278 support area. Overall, Alphabet’s trajectory this week reflects the tug between long-term institutional confidence and short-term concerns over AI valuation excesses and macroeconomic uncertainty.

We discussed how Alphabet surged after Berkshire’s stake renewed investor confidence. Berkshire Hathaway disclosed 17.85 million Alphabet shares valued at about $4.93 billion.

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