Alphabet (Google) Class C

GOOG

Market cap $4.22T

It's a heavy earnings week, with results also coming in from Halliburton, 3M, AT&T, Blackstone, and more. On the economic front, we'll see data on jobs, new-home sales, and industry purchasing activity.

I keep hitting the buy button on Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction) because the loudest bearish story attached to it, the idea that Google is bleeding AI talent to Anthropic and OpenAI, does not match anything I see in the numbers or the org chart.

Warren Buffett admitted that Berkshire's buy of Alphabet was his idea. He seeks businesses that can earn a high return on capital for a long time.

I keep hitting the buy button on Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction), and the reason is uncomplicated: the loudest bear case against this stock has already collapsed under its own weight, and I do not think the tape has fully absorbed that yet.

Warren Buffett confirmed he personally started Berkshire Hathaway's investment in Alphabet. Unlike competitors relying on debt, Alphabet raised $80 billion in equity to fund its AI build-out (including a $10 billion investment by Berkshire).

Warren Buffett has historically avoided tech stocks and once even said he would never buy Alphabet. Buffett said he made a mistake not buying Alphabet earlier.

Apple, Amazon, Nvidia and peers are quietly coming back to life, and that could easily jolt this sleepy stock market back into gear.

Earnings season heats up this week, with Big Tech taking center stage.

Apple has one of the best business models on the planet, but its valuation currently reflects that. Alphabet is the much cheaper stock and is well positioned as the most complete AI company.

Elon Musk's public praise of Anthropic reinforces Amazon and Alphabet's hidden AI investment advantage. Investors should separate paper valuation gains from sustainable operating earnings as AI enthusiasm remains elevated.