Berkshire Hathaway Expands Alphabet (GOOGL) Stake to 58M Shares as Ackman Exits

Key Takeaways

• Berkshire Hathaway expanded its Alphabet holdings to approximately 58 million shares, creating a position valued near $16.6 billion and elevating it to top-five status.
• The acquisition occurred during a 6% decline in Alphabet’s share price, with the stock trading at a forward P/E of 25x — beneath the S&P 500 benchmark.
• First-quarter 2026 results showed Alphabet generating $109.9 billion in revenue, representing 21.8% year-over-year growth, while Google Cloud’s contracted backlog surged to $460 billion.
• Pershing Square’s Bill Ackman divested more than 95% of his Alphabet holdings, reallocating capital to Microsoft shares amid a ~20% year-to-date decline.
• Bridgewater’s Ray Dalio joined Berkshire in accumulating Alphabet shares, with Trump and Pelosi also reporting early-2026 acquisitions.

Warren Buffett’s investment vehicle has executed one of its most significant recent strategic moves — targeting the tech giant behind Google.

First-quarter 2026 13F disclosures revealed Berkshire expanded its Alphabet stake to approximately 57.8 million shares, representing roughly $16.6 billion in market value. This acquisition elevated Alphabet into Berkshire’s five largest positions, marking an unusual aggressive play for the typically methodical conglomerate.

Alphabet Inc., GOOGL

Alphabet shares have climbed 115% during the trailing twelve months and gained 15% year-to-date. However, a recent 6% monthly decline created a tactical entry point for Berkshire’s accumulation. The company’s forward P/E ratio of 25x sits below the broader S&P 500 valuation — a characteristic that typically appeals to value-focused institutional investors.

Berkshire CEO Greg Abel’s investment team appears to have validated the thesis using Alphabet’s first-quarter performance metrics. Top-line revenue reached $109.9 billion, marking 21.8% year-over-year expansion. Earnings per share delivered $5.11, substantially exceeding the $2.63 consensus forecast. Google Cloud accelerated 63%, while its contracted commitment backlog nearly doubled sequentially to exceed $460 billion.

This backlog metric carries particular significance. Unlike projections or guidance, it represents legally binding future revenue. For an investment firm like Berkshire that prioritizes dependable cash generation, this contracted demand stream holds substantial analytical value.

Ray Dalio’s Bridgewater Associates similarly increased its Alphabet allocation during this window. Former President Trump and Representative Nancy Pelosi both filed disclosures showing early-2026 Alphabet purchases.

Ackman Rotates Into Microsoft

As Berkshire accumulated shares, Bill Ackman executed the opposite strategy.

Pershing Square liquidated over 95% of its Alphabet stake, rotating proceeds into Microsoft. Microsoft shares have declined approximately 20% year-to-date, currently trading near $378.90 compared to a Wall Street consensus target of $565.90.

Ackman’s thesis centers on Microsoft’s artificial intelligence trajectory. The company’s AI segment now operates at a $37 billion annual run rate, expanding 123% year-over-year. Azure cloud services posted 40% growth in its latest reporting period. Microsoft’s commercial remaining performance obligation reached $627 billion, doubling year-over-year.

Microsoft maintains a restructured equity position in OpenAI — approximately 27%, valued around $135 billion — with intellectual property licensing extended through 2032. Ackman is establishing this position at a forward P/E below 20x following substantial price compression.

Contrasting AI Investment Strategies

Both institutional moves fundamentally represent artificial intelligence investments, executed through divergent approaches.

Berkshire is positioning behind Google Cloud’s infrastructure capabilities and the contracted revenue pipeline supporting it. Ackman is backing Microsoft’s enterprise software dominance and strategic OpenAI alignment.

Analyst price targets underscore the current sentiment divergence. Alphabet carries a Wall Street consensus target of $417. Microsoft’s target stands at $565.90 — significantly above current trading levels.

Alphabet has appreciated 115% over the past year. Microsoft has depreciated approximately 20% during the identical timeframe.

The post Berkshire Hathaway Expands Alphabet (GOOGL) Stake to 58M Shares as Ackman Exits appeared first on Blockonomi.