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StocksMediumUpdated•Originally published 2 May 2026•Updated 3 May 2026•

1 min read

Baxter Bros Trims Alphabet Stake Despite Strong Earnings and Cloud Growth

Key Facts

1Baxter Bros Inc. reduced its stake in Alphabet Inc. by 9.7% in Q4 by selling 10,340 shares.

2Alphabet reported strong Q1 earnings of $5.11 EPS and $109.9 billion in revenue.

about 1 month ago

Version History

Version 1about 1 month ago

What changed: Added new institutional selling data from Boston Trust Walden Corp and AI capital expenditure forecasts for 2026, highlighting potential cash flow risks.

Baxter Bros Inc. reduced its position in Alphabet Inc. by 9.7% during the fourth quarter, followed by Boston Trust Walden Corp, which trimmed its stake by 11.6% to a remaining value of $258.25 million. These institutional moves occur despite Alphabet reporting robust earnings of $5.11 per share and a 63% surge in Google Cloud revenue. However, long-term projections now indicate that Alphabet's AI-related capital expenditures could reach between $185 billion and $190 billion by 2026. This massive spending cycle is raising concerns regarding its impact on free cash flow and the potential for heightened regulatory scrutiny. While Alphabet's core fundamentals remain strong, the increased spending outlook and institutional selling suggest a more cautious approach to the company's capital allocation strategy.