Don’t Rush to Buy GOOG Stock as Alphabet Heads Toward Bear Market Territory

Alphabet (GOOG) has experienced a downturn this year, despite its stellar 2025 performance. The stock peaked above $400 in May but has since dropped nearly 18%, nearing a bear market. Analysts are divided on whether the stock's current valuation is attractive, with some raising their target prices while others maintain a "Hold" rating.

Alphabet's cloud business is thriving, but its core search business appears to be slowing down. The company has reported significant gains from its investments in Anthropic and SpaceX, but these gains are largely due to non-GAAP earnings. With its forward P/E ratio now at 25x, many analysts believe the stock's valuations are not compelling enough for a "Buy" recommendation, and investors may want to stay on the sidelines for now.