Baron Opportunity Fund increased its stake in Alphabet (GOOG) in Q2 2026, calling it "one of the most strategically advantaged businesses in the AI era."
In its Q2 2026 investor letter, Baron Opportunity Fund highlighted Alphabet's strong performance in AI, noting that Google I/O 2026 revealed Alphabet processes 3.2 quadrillion tokens monthly, a sevenfold year-over-year increase, and the Gemini app surpassed 900 million monthly active users. Google Cloud revenue accelerated to 63% year-over-year growth, a five-year high, with operating margins expanding to 33% and the cloud backlog nearly doubling sequentially to approximately $462 billion.
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