Wall Street clearly loves Google stock, 13F filings reveal

Wall Street's enthusiasm for Google stock is evident in recent 13F filings, which show that 19 out of 20 of the largest funds own shares of Alphabet, Google's parent company. Only nine of Wall Street's biggest funds hold Apple shares. Google also attracted the most new investors in the period, with 11 firms increasing their positions compared to six reducing theirs.

Notably, no investors added Microsoft shares, with two funds exiting their holdings. Despite this, Google's stock rose by 0.8% in a quarter where the S&P 500 gained 14.9%. Concerns about AI spending overshadowed Google's strong second quarter performance. Google Cloud's revenue surged 82% to $24.8 billion, while the company's cloud backlog expanded to $514 billion, highlighting the demand for AI infrastructure.

YouTube's revenue reached $11.1 billion, up 13% year-over-year. Capital expenditures rose to $44.9 billion, exceeding Wall Street's forecast of $44.7 billion, with guidance for 2027 increasing to $195 billion to $205 billion. Analysts describe Google as a "Very High Quality Compounder" with a strong AI narrative, spanning chip, infrastructure, and application layers.