Why Alphabet Stock Is Spiking Toward New Highs In Premarket Today

The stock could be in for a strong ride on Monday, potentially taking the rest of the AI plays along with it.

• Berkshire disclosed a 17.85-million stake in Alphabet stock, valued at approximately $4.34 billion. 
• YouTube clinched a distribution deal with Disney after the latter’s content was removed from the Google-owned video streaming platform.
• The stock is the best-performing Magnificent Seven and has gained 46% year-to-date.

Alphabet, Inc. (GOOGL) (GOOG) stock climbed over 5% in Monday’s early premarket session, positioning it on track to test its all-time high of $292.01.

The upside trigger has been one of the world’s most astute investors initiating a position in Alphabet stock. =

The Buffett Bet

Buffett-run Berkshire Hathaway, Inc. (BRK-A) (BRK-B) disclosed in a 13F filing late Friday that it held 17.85 million shares of Alphabet stock, valued at approximately $4.34 billion. The firm has had no prior position in the search giant. The Oracle of Omaha had, though, hinted at missing the bus on Google in the past.

In a 2017 interview, Buffett said, “If I were forced to buy [Google-parent Alphabet] or short it, I’d buy it; same way with Amazon. But it’s as little hard when you look at something at ‘X’ and it sells at 10X to buy it.”

Buffett’s mantra is long-term value investing: plowing dollars into high-quality companies with durable competitive advantages whose shares are trading at reasonable prices and holding them for the long term.

Alphabet’s Class A stock trading under the ticker GOOGL gained 38% during the third quarter. Since the end of the third quarter, the stock has increased by approximately 14%, despite the volatility created by concerns over the AI bubble.

Among other catalysts, the stock could react to rumors of the company unveiling the latest iteration of its large language model, dubbed Gemini 3.0, and the distribution deal YouTube clinched with Disney after the latter’s content was removed from the Google-owned video streaming platform.

What Retail Feels About Google Stock

On Stocktwits, retail sentiment toward Alphabet stock remained ‘Neutral’ as of early Monday and the message volume was also ‘low.’ Although most retail users of the platform are positive about the Buffett bet, some are increasingly becoming uncomfortable with the stock’s valuation. The stock is the best-performing Magnificent Seven and has gained 46% year-to-date.

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