Alphabet Soars After Berkshire Reveals $5B Stake

Alphabet’s shares surged over 5% after Berkshire Hathaway disclosed a multibillion-dollar stake, signaling one of Warren Buffett’s rare and final big bets on a tech giant.

The market reaction

• Premarket jump: Alphabet stock rose 5.2–6.1% in premarket and after-hours trading.
• Current price: $284.76 per share, up 3.02% from the previous close of $276.41.
• Investor signal: The rally reflects confidence in Buffett’s endorsement despite his historic caution toward high-growth tech.

Berkshire Hathaway’s stake

• Position size: $4.3–$4.93 billion stake, totaling 17.9 million shares.
• Portfolio rank: Now Berkshire’s 10th-largest U.S. equity holding.
• Timing: Coincides with leadership transition to Greg Abel, marking one of Buffett’s last major investment calls.

Portfolio shifts

• Apple trim: Berkshire reduced its Apple holdings, selling billions in shares.
• Diversification: Apple remains the largest holding, but exposure is being balanced.
• Banking move: Berkshire also cut its stake in Bank of America.

Strategic context

• Buffett’s tech stance: Historically cautious, but Alphabet’s advertising, AI, and cloud dominance proved compelling.
• AI capex: Investment arrives amid heavy spending on data centers and chips.
• Past regret: Buffett previously acknowledged missing Google early despite Geico’s ad insights.

Why it matters

• Symbolic shift: Reflects how AI and digital platforms are central to modern value investing.
• Alphabet boost: Buffett’s seal of approval may strengthen investor confidence during AI buildout.
• Berkshire pivot: Balances traditional value plays with future-facing bets as leadership transitions.