Alphabet Inc. $GOOGL is Primecap Management Co. CA’s 5th Largest Position

Primecap Management Co. CA decreased its position in Alphabet Inc. (NASDAQ:GOOGL) by 0.9% in the 2nd quarter, Holdings Channel reports. The fund owned 14,859,769 shares of the information services provider’s stock after selling 127,690 shares during the period. Alphabet accounts for 3.1% of Primecap Management Co. CA’s holdings, making the stock its 5th biggest holding. Primecap Management Co. CA’s holdings in Alphabet were worth $5,310,436,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in GOOGL. Lifetime Wealth Management P.C. acquired a new stake in Alphabet during the 4th quarter valued at $32,000. EMC Capital Management acquired a new position in Alphabet in the 4th quarter worth $33,000. IFC & Insurance Marketing Inc. acquired a new position in Alphabet in the 4th quarter worth $38,000. Bard Associates Inc. purchased a new position in Alphabet in the 4th quarter valued at about $52,000. Finally, iSAM Funds UK Ltd purchased a new position in Alphabet in the 3rd quarter valued at about $53,000. Hedge funds and other institutional investors own 40.03% of the company’s stock.

Key Headlines Impacting Alphabet

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 Stock Down 2.3%

NASDAQ:GOOGL opened at $330.65 on Thursday. The company has a market capitalization of $4.04 trillion, a price-to-earnings ratio of 16.61, a price-to-earnings-growth ratio of 0.98 and a beta of 1.22. Alphabet Inc. has a one year low of $235.84 and a one year high of $408.61. The stock has a 50-day simple moving average of $347.72 and a 200 day simple moving average of $343.57. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.64 and a current ratio of 2.72.

Alphabet (NASDAQ:GOOGL) last announced its quarterly earnings data on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.89 by $6.22. Alphabet had a return on equity of 51.32% and a net margin of 54.77%.The firm had revenue of $119.80 billion for the quarter, compared to analysts’ expectations of $117.07 billion. Sell-side analysts predict that Alphabet Inc. will post 20.5 EPS for the current fiscal year.

Alphabet Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 14th. Stockholders of record on Monday, September 7th will be issued a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date is Friday, September 4th. Alphabet’s payout ratio is 4.42%.

Insider Activity

In related news, CAO Marsida Saraci sold 449 shares of the firm’s stock in a transaction on Wednesday, July 29th. The stock was 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 in the company, valued at $9,125,015.20. This trade represents a 1.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Frances Arnold sold 82 shares of Alphabet stock in a transaction on Friday, August 28th. The stock was sold at an average price of $337.71, for a total transaction of $27,692.22. Following the completion of the transaction, the director directly owned 18,995 shares of the company’s stock, valued at approximately $6,414,801.45. This represents a 0.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 451,925 shares of company stock worth $12,371,544. 11.61% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

GOOGL has been the topic of a number of analyst reports. Barclays reaffirmed an “overweight” rating and set a $425.00 target price (up from $405.00) on shares of Alphabet in a research report on Thursday, July 23rd. Loop Capital increased their price target on Alphabet from $355.00 to $490.00 and gave the company a “buy” rating in a report on Friday, May 15th. Phillip Securities upgraded Alphabet from a “moderate buy” rating to a “strong-buy” rating in a research note on Monday, July 27th. UBS Group cut their target price on Alphabet from $400.00 to $379.00 and set a “neutral” rating on the stock in a research report on Thursday, July 23rd. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $410.00 target price on shares of Alphabet in a research note on Thursday, September 3rd. Five analysts have rated the stock with a Strong Buy rating, forty-five have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, Alphabet has an average rating of “Buy” and an average target price of $420.19.

About Alphabet

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.