Alphabet (GOOGL) gained attention after Berkshire Hathaway (BRK.B), the holding company of legendary investor Warren Buffett, disclosed a new $4.3 billion position in the stock during the third quarter. The stock moved about 4% higher in after-hours trading once the filing became public.
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The investment surprised many on Wall Street, since Buffett has often avoided fast-growth tech stocks, with Apple (AAPL) and Amazon (AMZN) being the main exceptions. He has said he prefers businesses he understands well, such as American Express (AXP) and Coca-Cola (KO).
With this addition, Alphabet now ranks among Berkshire’s top U.S. equity holdings, and the news has sparked renewed interest from institutional investors.
Volume Spikes as Investors React to Berkshire’s Entry
Following the filing, trading activity in Alphabet surged. Reports show volume jumped more than 700%, reflecting a wave of buying interest after the disclosure.
This type of reaction is common when Berkshire takes a new position, as many investors view the firm’s involvement as a sign of long-term conviction rather than a short-term trade.
Strong Third Quarter Adds to the Momentum
The timing of Berkshire’s move aligns with a solid third quarter from Alphabet. The company reported its first $100 billion revenue quarter, helped by steady ad demand, growth at YouTube, and higher use of Google Cloud. Earnings per share came in at $2.87, well above the consensus estimate of $2.26.
Google Cloud was a standout, rising from $11.35 billion to $15.2 billion year over year and beating expectations of $14.74 billion.
AI also remains a core focus for the company. Alphabet has started rolling out its Gemini AI model across Search, YouTube, and Workspace, and analysts believe this could support future revenue growth as adoption increases.
Analysts Point to Growth Potential
Buffett has not commented on the investment, but some analysts believe Alphabet now offers a fair mix of price and growth compared to other large tech stocks. The company continues to bring in strong cash and has been buying back shares.
With demand for AI rising, many expect Alphabet to benefit from growth in cloud, search, and AI tools.
Is GOOGL Stock a Buy?
The stock of Alphabet has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 30 Buy and seven Hold recommendations issued in the last three months. The average GOOGL price target of $312.29 implies 12.98% upside from current levels.
