Why Cathie Wood and Berkshire Hathaway Both Love Google Stock Here

Cathie Wood and Berkshire Hathaway (BRK.A) (BRK.A) do not usually end up on the same side of a trade. One is known for aggressive bets on disruptive innovation, while the other built its reputation on disciplined, long-term value investing. Yet both are now signaling growing confidence in Alphabet's (GOOG) (GOOGL) stock.

Cathie Wood recently added 267,582 shares of Google parent Alphabet across four Ark Invest ETFs on June 3, ARK Innovation ETF (ARKK), ARK Autonomous Technology & Robotics ETF (ARKQ), ARK Next Generation Internet ETF (ARKW), and ARK Space Exploration & Innovation ETF (ARKX), doubling down on the company’s expanding role in artificial intelligence (AI), cloud computing, and digital advertising.

The move came shortly after Berkshire Hathaway agreed to invest $10 billion into Alphabet, marking one of the conglomerate’s boldest recent moves into Big Tech.

The rare overlap between Wood and Berkshire is drawing fresh attention from Wall Street because it highlights how Alphabet is increasingly appealing to both growth-focused and value-oriented investors. Google still dominates online search and digital advertising while simultaneously emerging as a major AI infrastructure powerhouse through Gemini, custom TPU chips, and Google Cloud.

Thus, as AI spending accelerates globally, Alphabet is positioning itself at the center of the next wave of growth and innovation.

About Alphabet Stock

Headquartered in Mountain View, California, Alphabet has transformed the tech landscape through its wide-ranging businesses, including Google Services, Google Cloud, and forward-looking initiatives like Waymo and Verily. Its strategic focus on AI and cloud computing continues to be a major growth engine, reinforcing its strong competitive positioning. With a market cap of $4.5 trillion, GOOGL remains a dominant force in global technology and a key member of the Magnificent Seven.

Alphabet stock has delivered a powerful rally over the past year as investors increasingly view the company as one of the biggest long-term beneficiaries of the AI boom. GOOGL jumped 3.7% on June 4, breaking a declining streak driven by renewed optimism around AI, cloud computing, and digital advertising potential. Moreover, the recent gains are bolstered by Berkshire Hathaway’s recent $10 billion investment deal tied to Alphabet and Cathie Wood’s aggressive buying across multiple ARK ETFs.

While the stock has seen periods of volatility tied to concerns around heavy AI infrastructure spending, Alphabet stock remains one of the market’s top-performing mega-cap technology names. GOOGL has gained 17.95% year-to-date (YTD) and surged 119.47% over the past 52 weeks, significantly outperforming the broader market. The stock recently touched a 52-week high of $408.61 on May 18, and is currently 9.9% below that peak.

GOOGL currently trades at a premium compared to the sector median and its own historical average at 25.13 times forward earnings.

Robust Q1 Results

Alphabet delivered a standout first-quarter 2026 earnings report on AprIL 29, which topped expectations. Total revenue came in at $109.9 billion, up 22% year-over-year (YOY), representing one of the company’s strongest growth rates in recent years and comfortably ahead of consensus estimates.

Moreover, net income surged to $62.6 billion, an 81% YOY increase from $34.5 billion, while EPS rose to $5.11, up 82% YOY and exceeded expectations. Operating income increased 30% from the prior-year quarter to $39.7 billion, with operating margins expanding to around 36% from 34%, highlighting improved efficiency despite heavy AI investment.

Additionally, Google Cloud emerged as the primary growth engine, with revenue rising 63% YOY to around $20 billion, driven by surging enterprise demand for AI infrastructure and services. Meanwhile, Search remained resilient with roughly 19% growth, while broader Google Services revenue grew 16% YOY, and YouTube advertising also posted solid gains.

Furthermore, the company raised its 2026 capital expenditure guidance to $180 billion to $190 billion, signaling an aggressive push to scale AI infrastructure, including data centers and proprietary chips.

Investors reacted positively to the earnings release with shares rising almost 10% on April 30.

Analysts remain optimistic, forecasting EPS of roughly $14.29 for fiscal 2026, a 32.2% YOY jump, followed by a further 3.15% rise to $14.74 in 2027.

What Do Analysts Expect for Alphabet Stock?

Recently, Truist Securities raised its price target on Alphabet stock to $430 from $415 while maintaining a “Buy” rating, citing stronger-than-expected growth prospects for Google Cloud.

Also, Wells Fargo reiterated its “Overweight” rating and $435 price target on Alphabet stock, highlighting the company’s strong balance sheet and cash generation as key advantages for funding massive AI and cloud infrastructure investments.

Wall Street is majorly bullish on GOOGL. Overall, GOOGL has a consensus “Strong Buy” rating. Of the 54 analysts covering the stock, 44 advise a “Strong Buy,” four suggest a “Moderate Buy,” and the remaining six analysts are on the sidelines, giving it a “Hold” rating.

GOOGL’s average analyst price target of $431.18 indicates an upside of 16.8% while the Street-high target price of $515 suggests that the stock could rally as much as 39.5%.