Alphabet's $80 billion equity raise signals confidence that AI demand exceeds its capacity, and Berkshire Hathaway's participation validates the plan. Berkshire, building its Alphabet stake since Q3 2025, agreed to buy $10 billion, 12.5% of the total, in a private placement at $351.81 per Class A and $348.20 per Class C share. Proceeds fund AI infrastructure and compute. Berkshire, not known as an AI optimist, would not join if the capex plan were irrational, so market fears look overdone. x.com  … Show more

Alphabet's AI capex payback is being repriced, making its post-earnings decline more than a one-day mood swing. Guidance and cloud and AI margin commentary are the near-term tests. If growth continues but the multiple compresses, the risk is duration in mega-cap AI, not a collapse in technology growth. x.com 

Alphabet now looks like a shale company that cannot stop spending on negative-ROIC investments, the habit that left shale drillers trading at 3x EBITDA. Per @TheStalwart, Alphabet is raising $80 billion of equity, including $10 billion from Berkshire Hathaway in a private placement, to expand its AI infrastructure, much as shale firms funded negative-ROIC wells with any capital available. This AI mania may go on longer. x.com  x.com 

Alphabet's AI spending is visibly turning into revenue, more than many other names can say today. Cloud is nearly a quarter of revenue, growing 103% at a 36% operating margin with a $561B backlog; total revenue rose 25%, operating income 30%, and margins are expanding. Free cash flow has been negative for two quarters, capex keeps climbing into 2027, and AI leaves search monetization uncertain. x.com 

Google Cloud's accelerating growth positions it to lead the AI cloud market, strengthening Alphabet beyond Search. It may pass Azure next quarter, then AWS, rising from #3 to #1 in 18-24 months. Selling its Anthropic stake could fund 12-18 months of capex and buybacks, but moving roughly $300B at market price without harming their TPU and Cloud partnership is unlikely. Alphabet is cheaper than Anthropic on sales or earnings multiples; the market likely expects a 2027 capital raise. x.com  x.com  … Show more

Alphabet's businesses beyond search are why it will lead the real AI boom. Google Cloud, DeepMind and Waymo broaden its reach, and its $900 million SpaceX investment is now worth $85 billion. Fear emerging as the shares fall is an opportunity; a decline toward the buy zone is welcome, even as Q3 capex has taken a large hit out of free cash flow. x.com  x.com  x.com  x.com 

Increasing AI spending looks set to weigh on Alphabet shares. Cash-flow burn is the key reason to expect a post-earnings decline. x.com  x.com 

Alphabet's AI-mode ads could move the needle, giving the stock a tentative upside bias despite search uncertainty. Search supplies $39b of $41b in quarterly segment profit, but its revenue growth slowed to 12% and will likely slow to 10% in Q4. Queries remain healthy; Alphabet says AI queries are mostly additive. Cloud revenue grew 96% year over year. At 18x a slightly above-consensus 2027 GAAP EPS estimate for over 30% operating profit growth, the stock remains a tough call. x.com  x.com  x.com 

Diversified cash flows in the billions make the AI-buildout basket more appealing than standalone model companies. Many members look reasonably priced and have longer records of delivering returns; Anthropic and OpenAI look much more like gambles at current valuations, though either could appeal at the right price. A possible equal-weight portfolio to revisit in five years includes Amazon, Alphabet, Microsoft, Meta, Oracle and SpaceX. x.com  x.com 

Alphabet is hard to bet against now that Berkshire Hathaway has recently bought the stock, a strong vote of confidence. x.com  x.com