Baupost Group's Investment Moves Analyzed
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy GOOG?
Source: Fool
- Amazon Investment Increase: Baupost Group purchased 2,121,391 shares of Amazon (AMZN) in Q4 2025, making it their second-largest holding, reflecting confidence in Amazon's e-commerce and cloud service sectors, which is expected to drive future earnings growth.
- Significant Cloud Service Growth: Amazon Web Services (AWS) achieved a 24% year-over-year growth rate in Q4 2025, contributing 57% of operating income despite only accounting for 18% of Amazon's net sales, indicating that the rapid expansion of high-margin businesses will enhance overall financial performance.
- Google Stake Reduction: Baupost Group cut its stake in Alphabet (GOOG) by 41.5% in Q4 2025, reflecting a cautious stance on market valuation; despite rapid growth in Alphabet's cloud services, Klarman opted to lock in profits.
- Investment Strategy Adjustment: Klarman's investment strategy indicates a preference for high-growth, high-margin businesses, with Amazon's forward P/E ratio at 21 times, 51% lower than its five-year average, potentially attracting his increased investment, while the reduction in Alphabet may stem from a reassessment based on value investing principles.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 306.020
Low
255.00
Averages
336.08
High
400.00
Current: 306.020
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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