Key Highlights
- Alphabet shares peaked at $404.47 during Tuesday’s session before retreating to approximately $393, bringing a $5 trillion valuation tantalizingly close.
- First-quarter financial results exceeded expectations with earnings per share of $5.11 and revenue climbing 21.8% annually to $109.9 billion.
- Warren Buffett’s Berkshire Hathaway expanded its Alphabet holdings roughly threefold to nearly 58 million shares worth approximately $17 billion.
- Investor enthusiasm surrounding Google I/O continues building, with analysts anticipating significant AI-related product reveals for Gemini, Search, Chrome, and Android platforms.
- Wall Street sentiment remains overwhelmingly positive with 28 Buy recommendations and a median price target of $363.40, despite recent insider selling activity.
Alphabet’s Class C shares climbed to $404.47 during Tuesday’s trading session, marking a new 52-week peak before closing around $393. This positions the tech giant’s market capitalization at approximately $4.8 trillion — just 4.2% shy of the historic $5 trillion threshold.
Reaching this benchmark would establish Alphabet as just the second publicly traded company ever to achieve such a valuation. Currently, Nvidia commands the highest market cap, while Apple trails at $4.4 trillion.
The upward trajectory gained momentum following impressive first-quarter earnings released on April 30. Alphabet reported earnings per share of $5.11, substantially exceeding the $2.68 analyst consensus. Total revenue reached $109.9 billion, representing a 21.8% year-over-year increase and surpassing the anticipated $106.96 billion.
The Cloud division delivered especially robust performance, while capital investments surged to nearly $36 billion during Q1 — double the expenditure from the corresponding period last year. The company reaffirmed its ambitious 2026 AI infrastructure investment plans.
Additionally, Alphabet increased its quarterly dividend from $0.21 to $0.22 per share, with payment scheduled for June 15 to shareholders registered by June 8.
Berkshire’s Strategic Bet
A significant catalyst emerged this week when regulatory filings revealed Berkshire Hathaway substantially expanded its Alphabet stake. The investment firm held approximately 17.8 million shares valued at $5.6 billion as of year-end 2024. By March 2025, that position had ballooned to nearly 58 million shares worth roughly $17 billion — representing a threefold increase in a single quarter.
This substantial investment has sparked considerable interest among market observers monitoring Greg Abel’s portfolio strategy as he prepares to assume Berkshire’s CEO role.
However, not all stakeholders are increasing their positions. Board member John L. Hennessy divested 1,050 shares in April at an average price of $331.65, trimming his holdings by approximately 23%. Additionally, GV 2019 GP LLC, a major institutional holder, sold 87,475 shares on May 15 at $23.75. Collectively, corporate insiders have liquidated $36.9 million in stock during the past three months.
I/O Conference Generates Buzz
Market attention has shifted toward Google I/O, the company’s flagship developer conference. Bank of America analysts anticipate comprehensive AI product announcements spanning Search, Chrome, and Android ecosystems. Expected reveals include Gemini enhancements, agentic commerce capabilities, and advancements in proprietary TPU chip technology.
Oppenheimer elevated its GOOGL price target from $425 to $445 this week while maintaining an Outperform designation. Truist maintains a $385 target, and Needham holds a $400 Buy rating.
Among 38 professional analysts covering the stock, Alphabet holds 6 Strong Buy ratings, 28 Buys, and 4 Holds. The average price target sits at $363.40 — notably below current trading levels.
The company trades at approximately 30x earnings, with the 50-day moving average at $329.28 and the 200-day moving average at $318.18. Alphabet maintains a net margin of 37.92% alongside a 38.99% return on equity.
Previous closing records stood at $402.62 for Class A shares and $399.04 for Class C, both established on May 13.
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