Alphabet stock (NASDAQ:GOOGL) has become the centerpiece of Berkshire Hathaway's newly reshuffled portfolio, and shares slipped 2.4% to 352.84 dollars as the market digested just how far new chief executive Greg Abel has taken his bet on the Google parent. The stock now trades within a 52 week range of 330.20 to 408.61 dollars, well off its highs, even as Berkshire's exposure to the company has grown into one of its largest holdings.
Data as of 2026-07-09Price 352.84 USD Day change -8.67 (-2.4%) 52-week range 330.2 – 408.61 Market cap $4.42T P/E ratio 32.34 EPS (ttm) 10.91 Dividend yield 0.25% RSI (14) 44.63 Volume 9,348,123
Abel stepped into the chief executive role on January 1 and moved quickly to remake the investment book he inherited. Berkshire's first quarter 2026 13F HR filing, submitted to the SEC on May 15, showed the portfolio shrinking from 42 holdings to 29 as Abel exited 16 positions outright. Alphabet absorbed the bulk of the freed up capital, a signal of how differently Abel is willing to concentrate risk compared with the Buffett era.
How Berkshire Built Its Alphabet Position
The buildup happened in two distinct steps. During the first quarter, Berkshire more than tripled its Class A Alphabet stake and started a new position in Class C shares, pushing the combined holding to nearly 58 million shares worth about 17 billion dollars by the end of March. Then on June 1, Alphabet unveiled an 80 billion dollar equity raise meant to fund artificial intelligence infrastructure, and Berkshire anchored the deal with a 10 billion dollar private placement, split evenly between Class A shares at 351.81 dollars and Class C shares at 348.20 dollars, a discount of roughly 6.5% to that day's closing price. Combined with the open market purchases, Berkshire's total Alphabet stake now tops 29 billion dollars, placing it alongside Apple, American Express, Coca Cola and Bank of America among the firm's five largest holdings, and pushing Chevron out of that group.
Alphabet's Valuation, Momentum and Yield Under Abel's Bet
Alphabet's current price puts its market capitalization at 4.42 trillion dollars, with a price to earnings ratio of 32.34 and earnings per share that support that multiple in a market still pricing in heavy AI spending. The dividend yield sits at a modest 0.25%, reflecting a company still directing most of its cash toward infrastructure rather than payouts. The relative strength index reads 44.63, a neutral to slightly weak momentum signal that suggests the stock is neither overbought nor showing strong buying pressure at the moment.
The bull case rests on Berkshire's own conviction: an anchor investment of this size, taken at a discount to market price, argues that Abel sees Alphabet's AI infrastructure spending as a long term earning driver rather than a drag. The bear case points to the stock trading roughly 14% below its 52 week high, a soft RSI reading, and a valuation that leaves little room for disappointment if AI investments take longer than expected to pay off.
The Selling Spree That Ran Alongside the Alphabet Buildup
Abel's Alphabet accumulation did not happen in isolation. He fully exited Domino's, Amazon, Visa, Mastercard, UnitedHealth Group and 11 other positions during the quarter. Several of those exits trace back to the departure of portfolio manager Todd Combs, who left Berkshire for JPMorgan; Abel told the Wall Street Journal in April that he unwound the positions Combs had managed. The Domino's exit is notable because Buffett built that 3.35 million share stake over six consecutive quarters with no earlier hint it was a short term holding. Overall, Berkshire was a net seller of about 8 billion dollars in equities during the quarter, buying roughly 16 billion dollars worth of stock while selling close to 24 billion dollars.
What Happens Next for Berkshire's Alphabet Stake
Abel has shown he is willing to concentrate Berkshire's capital in a way Buffett rarely did with a single technology name. Whether that bet pays off depends on how Alphabet's AI spending translates into earnings growth, and how the stock's current momentum, sitting well below its yearly high, resolves in the coming quarters.