Primecap Management Co. CA Sells 127,690 Shares of Alphabet Inc. $GOOGL

Key Points

• Primecap Management trimmed its Alphabet stake by 0.9%, selling 127,690 shares but retaining 14.86 million shares valued at approximately $5.31 billion. Alphabet remains the fund’s fifth-largest holding and represents 3.1% of its portfolio.
• Alphabet is accelerating its AI strategy, including a planned $15 billion investment in Finnish data centers and AI infrastructure and a 1,000-engineer deployment partnership with Accenture. However, the spending is pressuring free cash flow, while competition from AI agents and EU search regulations pose risks to its core search business.
• Alphabet reported quarterly revenue of $119.8 billion and EPS of $9.11, beating analyst estimates. Wall Street maintains a “Buy” consensus with an average price target of $420.19, compared with shares opening at $330.65.

Primecap Management Co. CA trimmed its stake in Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 0.9% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 14,859,769 shares of the information services provider's stock after selling 127,690 shares during the quarter. Alphabet makes up 3.1% of Primecap Management Co. CA's portfolio, making the stock its 5th biggest holding. Primecap Management Co. CA owned approximately 0.12% of Alphabet worth $5,310,436,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also made changes to their positions in GOOGL. Vanguard Group Inc. lifted its holdings in Alphabet by 2.4% in the 4th quarter. Vanguard Group Inc. now owns 528,969,322 shares of the information services provider's stock valued at $165,567,398,000 after purchasing an additional 12,531,695 shares in the last quarter. State Street Corp grew its holdings in shares of Alphabet by 1.8% during the second quarter. State Street Corp now owns 229,954,269 shares of the information services provider's stock worth $40,524,841,000 after buying an additional 4,008,374 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Alphabet by 1.9% during the fourth quarter. Geode Capital Management LLC now owns 146,193,037 shares of the information services provider's stock worth $45,625,595,000 after buying an additional 2,666,676 shares in the last quarter. Norges Bank acquired a new position in shares of Alphabet in the fourth quarter valued at approximately $30,534,239,000. Finally, Bank of America Corp DE raised its position in shares of Alphabet by 4.9% in the fourth quarter. Bank of America Corp DE now owns 69,108,183 shares of the information services provider's stock valued at $21,630,861,000 after buying an additional 3,218,852 shares during the last quarter. 40.03% of the stock is currently owned by hedge funds and other institutional investors.

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google announced plans to invest at least €13 billion ($15 billion) in Finnish data centers and AI infrastructure over the next two years—its largest-ever European investment. The facilities are expected to support Gemini, Search, Maps and YouTube, while a power agreement with Fortum, including nuclear energy, may help address AI’s substantial electricity needs. Google to invest $15 billion AI infrastructure in Finland
• Positive Sentiment: Google Cloud and Accenture launched a joint unit deploying 1,000 engineers to help companies implement AI agents. The initiative could accelerate enterprise adoption of Google’s cloud and AI services and improve monetization of Alphabet’s infrastructure spending. Google Cloud and Accenture AI deployment deal
• Positive Sentiment: Co-founder Sergey Brin is taking a more active role in advancing Gemini, signaling increased founder involvement as Alphabet seeks to strengthen its position in the AI race. Sergey Brin takes bigger role in Google AI
• Neutral Sentiment: Analysts continue to cite Alphabet’s strong return on invested capital, balance sheet and rapidly growing Google Cloud business as long-term strengths. However, the stock’s valuation is being assessed alongside its expanding AI infrastructure commitments.
• Negative Sentiment: The scale of the Finland and broader AI buildout increases capital expenditures and is pressuring free cash flow, creating uncertainty about when the investments will generate sufficient returns.
• Negative Sentiment: Meta’s launch of the paid Muse AI agent raised concerns that autonomous assistants could bypass traditional search results, weakening Alphabet’s search advertising model. Higher Treasury yields are also weighing on high-multiple technology stocks. Meta Muse AI agent pressures Alphabet
• Negative Sentiment: Google warned that EU-mandated changes to its European search results could reduce search quality, increase costs for businesses and potentially affect user engagement. Google warns of lower-quality European search results

Alphabet Price Performance

Shares of Alphabet stock opened at $330.65 on Thursday. Alphabet Inc. has a twelve month low of $235.84 and a twelve month high of $408.61. The stock has a market capitalization of $4.04 trillion, a P/E ratio of 16.61, a PEG ratio of 0.98 and a beta of 1.22. The company has a current ratio of 2.72, a quick ratio of 2.64 and a debt-to-equity ratio of 0.16. The business's fifty day moving average price is $347.72 and its 200 day moving average price is $343.57.

Alphabet (NASDAQ:GOOGL - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The information services provider reported $9.11 EPS for the quarter, topping analysts' consensus estimates of $2.89 by $6.22. Alphabet had a return on equity of 51.32% and a net margin of 54.77%.The company had revenue of $119.80 billion for the quarter, compared to the consensus estimate of $117.07 billion. As a group, research analysts anticipate that Alphabet Inc. will post 20.5 earnings per share for the current year.

Alphabet Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 14th. Investors of record on Monday, September 7th will be issued a $0.22 dividend. The ex-dividend date is Friday, September 4th. This represents a $0.88 annualized dividend and a yield of 0.3%. Alphabet's dividend payout ratio (DPR) is presently 4.42%.

Insider Buying and Selling at Alphabet

In other Alphabet news, CAO Marsida Saraci sold 449 shares of Alphabet stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $333.20, for a total transaction of $149,606.80. Following the transaction, the chief accounting officer directly owned 27,386 shares of the company's stock, valued at $9,125,015.20. The trade was a 1.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider John Walker sold 8,998 shares of the business's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $349.29, for a total transaction of $3,142,911.42. Following the sale, the insider owned 75,290 shares of the company's stock, valued at approximately $26,298,044.10. This represents a 10.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 451,925 shares of company stock valued at $12,371,544. 11.61% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on GOOGL shares. Needham & Company LLC restated a "buy" rating and set a $450.00 target price on shares of Alphabet in a research report on Wednesday, June 3rd. Jefferies Financial Group reiterated a "buy" rating on shares of Alphabet in a report on Monday, June 22nd. Weiss Ratings reissued a "buy (b)" rating on shares of Alphabet in a research note on Friday, July 17th. Truist Financial set a $420.00 price objective on Alphabet and gave the stock a "buy" rating in a report on Thursday, July 23rd. Finally, Phillip Securities raised Alphabet from a "moderate buy" rating to a "strong-buy" rating in a research report on Monday, July 27th. Five research analysts have rated the stock with a Strong Buy rating, forty-five have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Buy" and a consensus price target of $420.19.

Alphabet Profile

Alphabet Inc is a technology and holding company founded in 2015 through a restructuring of Google. The company is headquartered in Mountain View, California, and operates globally, serving consumers, businesses, advertisers and developers across numerous countries and regions.

Alphabet's largest business is Google Services, which includes Google Search, online advertising, YouTube, Android, Chrome, Google Maps, Google Play and hardware products such as Pixel devices. These products support activities including internet search, digital content distribution, mobile computing, online communications and advertising.

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