TLDR
- Alphabet hit a 52-week high of $404.47 before pulling back to around $393, putting a $5 trillion market cap within reach.
- Q1 earnings came in strong, with EPS of $5.11 beating estimates and revenue up 21.8% year over year to $109.9 billion.
- Berkshire Hathaway tripled its Alphabet stake to nearly 58 million shares, valued at around $17 billion.
- Google I/O is driving positive sentiment, with Wall Street expecting major AI announcements across Gemini, Search, Chrome, and Android.
- Analysts are broadly bullish, with 28 Buy ratings and a consensus price target of $363.40, though some insiders have been selling.
Alphabet’s Class C stock touched $404.47 on Tuesday, a fresh 52-week high, before settling near $393. The move puts the company’s market cap at roughly $4.8 trillion — about 4.2% away from the $5 trillion mark.
That milestone would make Alphabet only the second company in history to cross it. Right now, Nvidia holds the top spot. Apple sits at $4.4 trillion.
The recent run started with a strong first-quarter earnings report on April 30. Alphabet posted EPS of $5.11, blowing past the $2.68 consensus estimate. Revenue came in at $109.9 billion, up 21.8% year over year and ahead of the $106.96 billion analysts had expected.
Cloud showed particularly strong growth, and capital expenditures hit nearly $36 billion in Q1 — double what the company spent in the same period last year. Alphabet doubled down on its 2026 AI spending targets.
The company also nudged its quarterly dividend higher, from $0.21 to $0.22 per share, payable June 15 to shareholders of record as of June 8.
Berkshire Doubles Down
One of the bigger catalysts this week was a disclosure that Berkshire Hathaway significantly increased its Alphabet position. The conglomerate held roughly 17.8 million shares worth $5.6 billion at the end of 2024. By the end of March 2025, that had grown to nearly 58 million shares worth around $17 billion — a roughly 3x jump in just one quarter.
The move drew attention from investors watching where Greg Abel, Berkshire’s incoming CEO, is putting the portfolio.
Not everyone is piling in, though. Director John L. Hennessy sold 1,050 shares in April at an average price of $331.65, reducing his position by about 23%. A major shareholder, GV 2019 GP LLC, sold 87,475 shares on May 15 at $23.75. Insiders have offloaded a combined $36.9 million worth of stock over the past quarter.
Google I/O in Focus
Wall Street’s attention is now on Google I/O, Alphabet’s annual developer conference. Analysts at Bank of America expect broad AI product updates across Search, Chrome, and Android. Gemini upgrades, agentic commerce features, and progress on TPU chips are all on the radar.
Oppenheimer raised its price target on GOOGL from $425 to $445 this week, reiterating an Outperform rating. Truist has a $385 target, while Needham holds a $400 Buy rating.
Across 38 analyst ratings, Alphabet has 6 Strong Buy ratings, 28 Buys, and 4 Holds. The consensus price target stands at $363.40 — below where the stock is currently trading.
The company’s P/E sits at around 30x, its 50-day moving average is $329.28, and its 200-day moving average is $318.18. Alphabet’s net margin is 37.92%, with a return on equity of 38.99%.
The stock’s previous record close was $402.62 for Class A and $399.04 for Class C, both set on May 13.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
