Alphabet Inc., the parent company of Google, is set for solid gains on Monday after 24-hour trading data showed a strong market reaction to Berkshire Hathaway’s newly disclosed $4.3 billion stake.
Robinhood’s extended-hours data showed Alphabet (NASDAQ: GOOGL) rising 6.1% to $293.40 on Sunday evening, after briefly touching a 7% increase. The move follows Berkshire Hathaway’s revelation late last week that it purchased a $4.3 billion position, now ranking as its tenth-largest U.S. equity holding.
At the same time, Berkshire continued to reduce its stakes in Apple Inc. (NASDAQ: AAPL) and Bank of America (NYSE: BAC). Apple remains Berkshire’s biggest investment, even as the firm trims its exposure and increases its cash reserves.
The motivation for Berkshire’s Alphabet buy remains unclear. Warren Buffett previously praised Alphabet’s advertising business and expressed regret for not investing earlier, comments dating back to 2019.
The new investment comes at a time when concerns over elevated tech valuations are rising, especially amid intense enthusiasm surrounding artificial intelligence. This pressure weighed on tech stocks through late October and early November.
Alphabet recently reported better-than-expected earnings but lifted its capital expenditure outlook as it plans to expand spending on AI. The company also announced a $40 billion plan to build new data centers in Texas, signaling continued long-term investment.
