A top r/ValueInvesting post argues GOOG could replicate Apple's earnings yield trajectory, projecting a jump from 4% to 25% over the next decade.
Berkshire Hathaway deployed $10 billion into Alphabet in Q2, signaling institutional confidence in the company's AI-driven growth.
Google Cloud's backlog hit $514 billion, validating Alphabet's $205 billion capex plan as spending that is already generating returns.
Alphabet 
The Buffett-Style Value Thesis
The most upvoted post on r/ValueInvesting drew a direct comparison between Warren Buffett's famous Apple investment and the current opportunity in Alphabet. The author argued that Buffett likely bought GOOG at around 25x normalized earnings, giving an initial earnings yield of 4%. With Alphabet growing earnings per share at roughly 20% annually, the post projected that yield could compound to 25% over the next decade — mirroring the trajectory of Apple's EPS growth from $2.16 to $8.71 per share after Buffett's initial purchase.
The post resonated strongly, gathering 1,332 upvotes and 181 comments. It tapped into a broader sentiment shift among retail investors who are beginning to view mega-cap tech through a value lens rather than pure growth.
Berkshire's $10 Billion Vote of Confidence
The Reddit value thesis gained real-world validation from news that Berkshire Hathaway's Greg Abel deployed approximately $10 billion into Alphabet during Q2 2026. The investment was part of a broader $35 billion deployment spree that marked a significant shift from Buffett's historically cautious cash management. The move suggests that Berkshire sees Alphabet as a core holding for the next generation of leadership, reinforcing the narrative that GOOG offers both growth and value.
Cloud Backlog Validates Massive Capex
Same-day news from The Motley Fool highlighted a critical data point: Alphabet's Google Cloud backlog reached $514 billion in multiyear enterprise commitments, even as the company raised its 2026 capital expenditure guidance to $205 billion for AI infrastructure. The article argued that the backlog — not the capex number — matters more, as it demonstrates that the spending is already generating returns. Roughly 90% of Fortune 100 companies now use Gemini Enterprise, and Google Cloud revenue accelerated 82% year-over-year with expanding margins.
Options Traders See Opportunity in Low Volatility
On r/options, a separate discussion focused on deep in-the-money LEAP call options on GOOG. The author noted that implied volatility for Google is at its lowest point in the past year, making long-dated options relatively cheap. With a calculated leverage of 2.6x, the strategy aims to capture upside from a volatility spike before theta decay accelerates. The post reflects a more tactical, bullish view that complements the longer-term value thesis.
The AI Infrastructure Spending Context
Alphabet's massive AI investment is part of a broader industry trend. Amazon, Microsoft, and Alphabet are collectively spending nearly $600 billion on data center infrastructure, with Taiwan Semiconductor Manufacturing identified as the primary beneficiary. While some investors worry about the scale of this spending, Alphabet's cloud backlog suggests its investments are more validated than those of its peers. The company's ability to convert AI infrastructure into enterprise revenue is a key differentiator that Reddit investors are beginning to appreciate.
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