Berkshire Hathaway Increases Alphabet Stake by 658% Amid Cloud Growth
Berkshire Hathaway Increases Alphabet Stake by 658% Amid Cloud Growth
US · Published Aug 18, 2026
Berkshire Hathaway has significantly increased its investment in Alphabet, raising its stake by 658% in the last quarter, according to 24/7 Wall St. This move has drawn attention to Alphabet's performance, particularly its Google Cloud division, which reported an 82% revenue growth in Q2
Despite strong quarterly results, including a 24.2% year-over-year revenue increase to $119.80 billion and an EPS of $9.11, Alphabet's stock has cooled, dropping 4% in a single session. Analysts attribute this to concerns over rising capital expenditures, which nearly doubled to $44.92 billion, and negative free cash flow. However, the company’s $514 billion cloud backlog and its competitive valuation compared to peers like Microsoft and Meta suggest potential for future growth.

Impact & Risks

The increased investment by Berkshire Hathaway signals confidence in Alphabet's long-term growth, particularly in its cloud and AI capabilities. However, the company faces risks from its high capital expenditure guidance of $175–$185 billion for 2026, a suspended stock buyback program, and rising long-term debt, which has nearly doubled to $98.2 billion. Regulatory challenges, such as a $3.5 billion fine from the European Commission, also pose potential hurdles. Investors are closely watching whether Alphabet can convert its cloud backlog into revenue while managing these financial and regulatory pressures.

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