Berkshire's Alphabet Stake Falls $7 Billion After Weak Q3 Earnings, Stock Drops 11%

Warren Buffett's final major equity purchase at Berkshire Hathaway (BRK.A) is under pressure after Alphabet (GOOGL) reported third-quarter results that missed expectations, sending the stock down 11% in after-hours trading to $288 per share. Alphabet posted earnings per share of $2.12, down from $2.87 a year earlier and below the roughly $3 consensus. Free cash flow was negative $9 billion due to heavy AI-related capital spending. Berkshire began building its Alphabet position in the third quarter of 2025, buying 18 million shares at an average of about $225, then added roughly 40 million shares in the first quarter of 2026 at about $315 and nearly 50 million more in the second quarter, including almost 30 million shares from an $85 billion equity offering priced at about $350. Berkshire held 106 million Alphabet shares as of June 30, valued at about $30 billion at the after-hours price, down from a June peak of $37 billion. Alphabet is Berkshire's fourth-largest equity holding behind Apple (AAPL), American Express (AXP) and Coca-Cola (KO). Buffett, who stepped down as CEO at the end of 2025, told CNBC in July the Alphabet purchase was his decision. He has since handed the chairman role to his son Howard Buffett.