GOOGL
LONGSHORTALPHABET INC
News Summary
NeutralAlphabet delivered exceptional Q1 2026 results with 22% revenue growth, 82% EPS growth, and Google Cloud accelerating to 63% YoY growth, while completing major strategic acquisitions (Wiz for $32B, Intersect for $4.75B) and expanding AI leadership with Gemini reaching 750M MAU. However, the company faces material regulatory headwinds including DOJ search remedies effective June 2026, an ad-tech divestiture verdict expected Q4 2026, and aggressive capex guidance of $175-185B (doubling 2025 spend), while valuation concerns have prompted analyst downgrades citing elevated P/E multiples and limited margin for error.
Red flags
- •DOJ search monopoly remedies (default deal ban, choice screens, data portability) take effect June 2026 with potential structural divestitures still under review
- •Ad-tech case remedy verdict expected Q4 2026 could mandate forced sale of AdX and DFP business units
- •Capex guidance of $175-185B (doubling YoY) signals significant cash deployment risks and margin pressure if ROI disappoints
- •Multiple analyst downgrades in Jan-May 2026 citing aggressive valuation (26x EV/EBITDA, elevated P/E) with limited upside buffer
- •EU fines (€2.95B) and ongoing Digital Markets Act compliance proceedings create ongoing regulatory uncertainty and cost
Funds Buying (7)
| Fund | Manager | Shares Held | ∆ Shares | Position Value | QoQ | Status |
|---|---|---|---|---|---|---|
| Berkshire Hathaway | Warren Buffett | 54.2M | +36.4M | $15600.1B | +204% | Existing |
| Himalaya Capital | Li Lu | 2.5M | +2.5M | $731.4B | — | NEW |
| TCI Fund Management | Chris Hohn | 2.5M | +2.5M | $706.5B | — | NEW |
| Point72 | Steve Cohen | 646K | +341K | $185.7B | +112% | Existing |
| D1 Capital | Dan Sundheim | 469K | +469K | $134.8B | — | NEW |
| Lone Pine Capital | Steve Mandel | 188K | +188K | $53.9B | — | NEW |
| Third Point | Dan Loeb | 175K | +175K | $50.3B | — | NEW |
Shares Held and Position Value reflect total quarter-end holdings. ∆ Shares is the change from the prior quarter.
Funds Reducing / Exiting (3)
| Fund | Manager | Shares Held | ∆ Shares | Position Value | QoQ | Status |
|---|---|---|---|---|---|---|
| Pershing Square | Bill Ackman | 32K | -646,366 | $9.3B | -95% | Existing |
| Duquesne Family Office | Stanley Druckenmiller | 0 | — | — | -100% | EXITED |
| Altimeter Capital | Brad Gerstner | 0 | — | — | -100% | EXITED |
Shares Held reflects quarter-end positions for partial reductions. Funds that fully exited show 0 shares held. ∆ Shares is the change from the prior quarter.