GOOG Stock Sinking: What's the Price Doing vs. Investor Panic?

Is GOOG Stock a Buy? More Like a Slow-Motion Car Crash

So, Michael Burry, the guy who called the 2008 housing collapse, is now screaming about AI stocks being overhyped… again. First NVDA, then PLTR, and now he's accusing the hyperscalers – Google (GOOGL) included – of straight-up accounting fraud. Seriously?

This feels like déjà vu all over again. Burry yells "sell," everyone panics, and then… well, usually the market does what it wants anyway. Remember his one-word tweet back in early 2023? He was "wrong" then, he admitted. So why should we listen now?

The "Fraud" of Depreciation

Burry's latest claim is that these tech giants are artificially extending the "useful life of assets" to understate depreciation and inflate earnings. He calls it "one of the more common frauds of the modern era." Okay, Nate, let's not get carried away.

He's saying Alphabet doubled the "network/compute useful life" to six years back in 2020. Which, yeah, spreads out the cost and makes the bottom line look nicer. But is it fraud? I mean, come on. Every company plays these games to some extent. It's called "accounting." Legal accounting, usually. But I get his point.

The thing is, these companies are spending insane amounts of money on AI infrastructure. Data centers, TPUs, the whole shebang. That stuff doesn't last forever. It becomes obsolete, breaks down, or gets replaced by something shinier and new. And all that depreciation does hit their earnings.

Alphabet's Q3 2025 revenues did top $100 billion, which is great and all, but are they really growing profits like they used to? Are they really worth $3.5 trillion. I don't know, man.

Europe's Got Beef (Again)

And just when you thought things were calming down, the European Commission decides to launch a formal investigation into Google's "site reputation abuse policy." Apparently, they think Google's unfairly punishing news sites for including sponsored content.

Give me a break.

So, the E.C. thinks Google's being a meanie, and they might fine Alphabet up to 10% of its global turnover. That's like, $77 billion! Okay, nobody really thinks that's going to happen. But it highlights the constant regulatory risk hanging over these Big Tech companies, especially in Europe. They're always under the microscope.

Alphabet can’t catch a break.

It's like watching a slow-motion car crash. You see it coming, you know it's going to be ugly, but you can't look away. Is it enough to sink the whole ship? Probably not. But it sure ain't pretty.

Offcourse, all the analysts are still tripping over themselves to slap "buy" ratings on GOOG. Strong buy, moderate buy, whatever. They're all drinking the Kool-Aid. They’re saying YouTube is a "key growth catalyst" and Alphabet's cloud business is crushing it.

Then again, maybe I'm the crazy one here.

The Insiders Are Bailing

Oh, and get this: while all the Wall Street cheerleaders are telling you to buy, buy, buy, the insiders are selling. Director John L. Hennessy dumped a bunch of shares, and even CEO Sundar Pichai cashed out almost $10 million worth.

What’s that tell ya?

I mean, it's their money, they can do what they want. But it doesn't exactly inspire confidence, does it? They know something we don't?

So, What's the Real Deal?

Look, Google's still a monster. They dominate search, they've got a solid cloud business, and they're swimming in cash. But there are definitely storm clouds gathering. Between Burry's accusations, the EU's regulatory scrutiny, and the insider selling, I ain't exactly rushing out to buy GOOG stock right now. It feels like the market is priced to perfection, and any bad news could send it tumbling.