We just covered Billionaire Dan Loeb Pivots to AI and Sells Old Economy Stocks: His Top 7 AI Picks. Alphabet (NASDAQ:GOOGL) ranks #3 (see Billionaire Dan Loeb's Top 5 AI Stock Picks).
Billionaire Dan Loeb's Stake: 175,000 Shares Valued at Approximately $50.32 Million (NEW position)
Billionaire Dan Loeb piled into Alphabet (NASDAQ:GOOGL) in the first quarter and that bet proved to be profitable. The stock is up 17% so far this year.
Loeb isn't alone in turning bullish on Google. For the past two years, Alphabet (NASDAQ:GOOGL) was widely considered the biggest loser of the AI revolution, because AI directly threatened its bread and ***** er — search. Why would anyone use Google Search when ChatGPT or Claude could just answer your question directly? But Alphabet turned the tables, embraced AI aggressively, and is now one of the clearest beneficiaries of the very trend that was supposed to destroy it. Its AI products and Google Cloud have become its biggest growth catalysts.
The cloud numbers tell the story. In Q1 2026, Google Cloud's contracted backlog surged 93% on a sequential basis to $462.3 billion. These are not forecasts or wishful projections — these are signed contracts from enterprise customers who have already committed to paying Alphabet (NASDAQ:GOOGL). The company says roughly 50% of this backlog, or over $230 billion, is expected to convert into recognized revenue within the next 24 months. On top of that, Google Cloud grew 63% year-over-year in Q1 — significantly ahead of Microsoft Azure at 40% and Amazon Web Services at 28%. Google Cloud is simultaneously the third-largest cloud provider and the fastest-growing one, and management has explicitly said revenue would have been even higher if the company could physically build infrastructure fast enough to meet demand.
Billionaire Dan Loeb's Stake: 175,000 Shares Valued at Approximately $50.32 Million (NEW position)
Billionaire Dan Loeb piled into Alphabet (NASDAQ:GOOGL) in the first quarter and that bet proved to be profitable. The stock is up 17% so far this year.
Loeb isn't alone in turning bullish on Google. For the past two years, Alphabet (NASDAQ:GOOGL) was widely considered the biggest loser of the AI revolution, because AI directly threatened its bread and ***** er — search. Why would anyone use Google Search when ChatGPT or Claude could just answer your question directly? But Alphabet turned the tables, embraced AI aggressively, and is now one of the clearest beneficiaries of the very trend that was supposed to destroy it. Its AI products and Google Cloud have become its biggest growth catalysts.
The cloud numbers tell the story. In Q1 2026, Google Cloud's contracted backlog surged 93% on a sequential basis to $462.3 billion. These are not forecasts or wishful projections — these are signed contracts from enterprise customers who have already committed to paying Alphabet (NASDAQ:GOOGL). The company says roughly 50% of this backlog, or over $230 billion, is expected to convert into recognized revenue within the next 24 months. On top of that, Google Cloud grew 63% year-over-year in Q1 — significantly ahead of Microsoft Azure at 40% and Amazon Web Services at 28%. Google Cloud is simultaneously the third-largest cloud provider and the fastest-growing one, and management has explicitly said revenue would have been even higher if the company could physically build infrastructure fast enough to meet demand.
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