Shares of Alphabet Inc. were poised for a strong jump on Monday, according to 24-hour trading data, after Warren Buffett’s conglomerate Berkshire Hathaway revealed a multibillion-dollar investment in the Google parent.
Alphabet Inc. (NASDAQ:GOOGL) climbed 6.1% to $293.40 in Sunday evening after-hours trading on Robinhood, briefly touching gains of up to 7%.
The rally follows Berkshire Hathaway’s (NYSE:BRK.B) disclosure late last week that it had accumulated a $4.3 billion stake in Alphabet, now ranking as the firm’s tenth-largest equity holding in the United States.
In the same filing, Berkshire trimmed its positions in Apple Inc. (NASDAQ:AAPL) and Bank of America Corp (NYSE:BAC). Apple remains Berkshire’s largest stock holding despite steady reductions this year as the firm boosts its cash reserves.
The motivation behind Berkshire’s move into Alphabet was not immediately clear. Buffett previously praised Alphabet’s advertising operations back in 2019 and expressed regret over not buying the stock sooner.
The investment arrives at a time when questions about expensive tech valuations—especially those inflated by AI enthusiasm—are widespread. Such concerns weighed on technology shares through late October and early November.
Alphabet posted stronger-than-expected quarterly earnings in late October but also raised its capital-spending forecast to support growing AI-related investments.
Over the weekend, the company announced plans to invest $40 billion to build new data-center infrastructure across Texas.