Berkshire's Alphabet Bet Likely Sits at a Loss After Weak Earnings

what happened

Barron's reports that Berkshire Hathaway most likely holds a paper loss on its large Alphabet position. Alphabet's voting shares slid about 11% in after-hours trading to $288, after third-quarter earnings of $2.12 per share came in below $2.87 a year earlier and a consensus near $3. The company also posted negative free cash flow of $9 billion, driven by heavy spending on artificial intelligence.

Berkshire built the stake through 2025 and 2026, including a $10 billion purchase at roughly $350 a share during the $85 billion equity raise in early June. Its average entry price cannot be pinned down from public data, but Barron's puts it above $300 and perhaps close to $320. The stake is now worth around $30 billion, versus a $37 billion peak in June. Alphabet remains Berkshire's fourth-largest equity holding, after Apple, American Express and Coca-Cola.

why it matters

Berkshire stopped disclosing cost bases for its top holdings earlier this decade, which makes it harder for investors to judge gains and losses on newer positions. Barron's suggests CEO Greg Abel bring that table back in his 2027 shareholder letter. For markets, the episode shows how a weak earnings print and cash burn from AI spending can hit even a long-held mega-cap stake.

market impact

Alphabet: weak earnings and negative free cash flow pressure the shares

• ▼Alphabet shares pressure down — quarterly earnings below expectations and negative free cash flow

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