Alphabet (GOOGL) Stock: ARK Invest and Berkshire Hathaway Seize Opportunity After Equity Raise

Key Highlights

• Berkshire Hathaway purchased $10 billion worth of Alphabet stock at approximately 6% below recent highs in a deal led by new CEO Greg Abel
• ARK Innovation ETF acquired 97,420 shares each of Class A and Class C stock, totaling ~$162 million and representing 2.33% of its holdings
• Across all its funds, ARK Invest accumulated 267,582 Alphabet shares valued at roughly $95.9 million on June 3
• The purchases followed a 4.6% two-day decline triggered by an approximately $85 billion equity offering announcement
• ARK simultaneously added positions in Alibaba and Meta while reducing its AMD holdings by roughly $39 million
• Alphabet stock has climbed 113% year-over-year despite the recent pullback

In an unusual convergence of investment philosophies, both Cathie Wood’s growth-focused ARK Invest and Warren Buffett’s value-oriented Berkshire Hathaway have taken significant positions in Alphabet—a rare alignment for these divergent investing strategies.

Berkshire Hathaway executed a substantial $10 billion acquisition of Alphabet common shares on Monday, capitalizing on roughly a 6% price reduction. The transaction marks a notable early move under Greg Abel’s leadership as Buffett’s chosen successor.

Days later, ARK Invest made its move. On Wednesday, June 3, the flagship ARK Innovation ETF purchased 97,420 shares of both Class A and Class C Alphabet stock. The combined position was worth slightly more than $162 million based on Wednesday’s closing prices, accounting for 2.33% of the fund’s total assets.

Alphabet Inc., GOOGL

The Catalyst Behind Simultaneous Purchases

Alphabet’s stock experienced approximately a 4.6% decline across two consecutive trading days. The sell-off was triggered by the company’s announcement of a massive capital raise—approximately $84.75 billion—earmarked for expanding AI infrastructure and computational resources.

This temporary weakness created an attractive entry point for both institutional investors. ARK Invest deployed approximately $95.9 million across its fund family, accumulating a total of 267,582 Alphabet shares.

The buying wasn’t limited to ARK’s flagship fund. The firm’s Autonomous and Robotics Technology ETF, Next Generation Internet ETF, and Space and Defense Innovation ETF all participated in the coordinated purchase on June 3.

Despite the recent pullback, Alphabet has delivered impressive returns of 113% over the trailing twelve months. Investor enthusiasm has been fueled by the company’s Gemini AI chatbot platform and proprietary tensor processing unit chip technology. Analysts maintain a Strong Buy consensus rating, with the average target price of $427.89 suggesting approximately 19% upside potential.

Additional ARK Invest Portfolio Adjustments on June 3

Alongside its Alphabet purchase, ARK acquired 30,273 shares of Alibaba valued at approximately $4 million. The Chinese technology giant’s stock declined 2.76% on Wednesday and has posted losses of roughly 11% year-to-date.

ARK also added 5,608 shares of Meta Platforms, representing about $3.35 million in value. Meta’s stock rose over 4% during the session but remains approximately 10% lower for the year. Analysts rate Meta as a Strong Buy with potential upside of around 32%.

On the divestment side, ARK significantly reduced its Advanced Micro Devices exposure, selling 74,838 shares for approximately $39 million. AMD has delivered extraordinary gains of more than 140% year-to-date, driven by robust demand for its artificial intelligence processors.

Additional reductions included Baidu and Teradyne positions, with ARK liquidating roughly $14.6 million and $18.3 million in shares respectively.

Despite ARK’s profit-taking in AMD, Wall Street analysts maintain a Strong Buy consensus on the semiconductor company. However, the average price target of $477.33 currently trails the stock’s recent trading levels.

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