Breakfast News: GOOG’s $80 Billion AI Power Play

Alphabet set to raise capital with Berkshire involved, space stocks fall after record rally, and more…

This email was sent

June 2, 2026 7:33am EDT

Is this your brand on Milled? Claim it.

Matte tone:

Did a friend forward you this message? Sign up here so you get them all!

JUNE 2, 2026

Monday's Markets

S&P 500 7,600 (+0.26%) Nasdaq 27,087 (+0.42%)

Dow 51,079 (+0.09%) Bitcoin 71,523 (-2.83%)

Image shows chart of Alphabet and Berkshire Hathaway cash positions over the past year

1. Alphabet Launches Historic Stock Sale

Alphabet (NASDAQ:GOOG) confirmed it will sell $80 billion in stock, including a $10 billion sum sold to Berkshire Hathaway (NYSE:BRKB), as it seeks more capital to fund AI compute infrastructure to meet “unprecedented customer demand.” Berkshire stock was little changed ahead of the opening bell, while Alphabet fell around 2.5%.

“Be it power, land, supply chain constraints, how do you ramp up to meet this extraordinary demand for this moment?”: CEO Sundar Pichai recently commented compute capacity was what keeps Alphabet execs up at night, with scaling up investments seen as a key way to support the growth opportunity ahead.
Berkshire’s current Alphabet holding worth around $20 billion: The team at Berkshire have been building a stake in the company since Q3 last year. The additional $10 billion is likely to take it to the third largest portfolio holding, behind Apple (NASDAQ:AAPL) and American Express (NYSE:AXP).

2. Results Roundup: CRDO Disappoints as HPE Wins Big

As highlighted in yesterday’s Breakfast News, Ulta Beauty (NASDAQ:ULTA) and Palo Alto (NASDAQ:PANW) release earnings after the closing bell today. Ulta has previously been recommended by Team Hidden Gems, while both are recommended by Team Rule Breakers.

Another Team RB recommendation: Hewlett Packard Enterprise (NYSE:HPE) rocketed over 25% in pre-market trading thanks to quarterly results beating expectations due to Cloud and AI revenue increasing, with management now expecting 29%-33% revenue growth for the full year.
Revenue jumps 157% but slowing growth forecast: Credo Technology (NASDAQ:CRDO) initially fell over 12% in early trade, before recovering most of those losses, despite posting record revenue and profitability as investors noted a slowing pace of growth for the coming quarter and a concern over gross profit margin compression.

3. Space Stocks Jitter Ahead of SpaceX IPO

Space stocks including Rocket Lab (NASDAQ:RKLB) and Redwire (NYSE:RDW) fell 14.7% and 15.83% yesterday respectively, as the sector takes a pause from a record-breaking rally ahead of the SpaceX IPO.

Higher volatility prompts caution: General excitement has been a factor in driving related stocks higher, with Redwire up over 130% in the past month. The short-term move suggests some investors are now looking to reduce exposure ahead of the SpaceX IPO, given the potential for further volatility.
“Rocket Lab needs to be viewed as a long-term growth story”: Fool contributing analyst Lou Whiteman said last month that although the latest company results don't justify such a high valuation, “there is nothing in the report to suggest Rocket Lab isn't on its way toward growing into the company the market expects in the years to come.” The stock is beating the S&P 500 by 204% since the Stock Advisor recommendation by Team HG in July 2025.

4. Your Take

Next week’s SpaceX IPO is the investment topic du jour, and we continue to bring you takes from Fools on both Team Hidden Gems and Team Rule Breakers.

Lou Whiteman on Team HG yesterday noted, “I still expect a successful IPO … SpaceX's path to the public markets is as complicated as its plan to reach Mars. It's not set up to provide the clarity market watchers love to see. Don't take that uncertainty as a sign the IPO is in trouble.”

Meanwhile, Team RB’s Jim Mueller recently said, “IPOs are designed to get people excited and eager to buy. But the harsh reality is that the vast majority of them end up losing money for investors over the following three to five years. I’d rather remember that and go with the odds. Especially for a company that burns cash and has some really crazy assumptions built into its valuation.”

On a scale of 1-10, how excited are you about the upcoming SpaceX IPO? (1 = not interested at all, 10 = can't wait to buy). What excites you or what concerns you about SpaceX as an investment?

Debate with friends and family, or become a member to hear what your fellow Fools are saying!

Follow Fool.com on Google

How did you like this email?

If you have any questions, check out our Help Center here.

The Motley Fool, its directors, employees, contractors or staff may own positions in the companies mentioned in this email. For more details, please see our disclosure policy.

The Motley Fool
2000 Duke Street
Alexandria, VA 22314

Manage your email settings.