Alphabet (GOOGL) (GOOG) shares jumped in premarket trading today after Berkshire Hathaway (BRK.A) (BRK.B) announced it bought a stake in the tech firm. The filing shows Berkshire held about 17.85 million shares at the end of September. Based on the latest stock price, the stake is worth close to $4.93 billion.
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GOOGL shares gained 5.4% ahead of the market open. Year-to-date, Alphabet is now up about 46%, with most of the recent gains occurring since late summer.
A Shift in Berkshire’s Tech Play
This move stands out because Berkshire has historically been a rare investor in large tech companies. It has held a longtime position in Apple (AAPL), but Warren Buffett has said he views it more as a consumer brand than a tech play. In contrast, Alphabet is a direct bet on advertising, search, cloud, and AI. It is not yet clear if Buffett made the Alphabet call himself. Berkshire also has two portfolio managers, Todd Combs and Ted Weschler, who handle part of the fund. Buffett typically takes the lead on larger positions.
Meanwhile, Berkshire trimmed its Apple stake during the same period. It reduced the position from 280 million shares to around 238.2 million shares by the end of the third quarter. This shift may reflect a move to rebalance its exposure among the top names.
Looking Ahead
Buffett plans to step down as CEO at the end of 2025. He will be succeeded by Greg Abel, who currently oversees Berkshire’s non-insurance businesses. The firm’s investment strategy is expected to remain steady, though the team has been adjusting positions more actively in recent quarters. The new stake in Alphabet signals growing confidence in the company’s longer-term position in the tech and AI space.
Is Google Stock a Buy?
Google still holds the backing of the Street’s analysts, with a Strong Buy consensus rating. The average GOOGL stock price target stands at $312.29, implying a 12.98% upside from the current price.
