NextFin News - Sax Wealth Advisors LLC increased its position in Alphabet Inc. by 16.0% during the fourth quarter of 2025, according to a 13F filing with the Securities and Exchange Commission. The New Jersey-based institutional investment manager added 3,868 shares of the search giant’s stock, bringing its total holdings to 28,006 shares. At the close of the reporting period, the position was valued at approximately $8.79 million, representing a calculated bet on the tech titan as it navigates a pivotal transition into an AI-first enterprise.
The move by Sax Wealth Advisors, a firm that manages a diversified portfolio of roughly $2.13 billion across nearly 500 holdings, reflects a targeted accumulation rather than a broad market shift. While the firm’s top holdings remain dominated by broad-market and fixed-income vehicles like the Dimensional US Core Equity 2 ETF (DFUS) and Fidelity Total Bond ETF (FBND), the double-digit percentage increase in Alphabet suggests a specific conviction in the company’s valuation or its recent operational pivot. This accumulation occurred just as Alphabet was preparing to report a historic milestone: its first-ever fiscal year with revenues exceeding $400 billion.
Alphabet’s fourth-quarter performance, released in February 2026, appeared to validate such institutional interest. The company reported revenue of $113.83 billion, an 18% year-over-year increase that surpassed analyst expectations. The growth was fueled largely by a surge in Google Cloud revenue, which nearly doubled compared to the same period in 2024. However, the financial picture remains complex. Despite the top-line success, Alphabet’s "Other Bets" division, which includes the autonomous driving unit Waymo, reported a staggering $3.61 billion loss for the quarter—a more than 200% increase in losses year-over-year.
The investment landscape for Alphabet under U.S. President Trump has been defined by a dual focus on aggressive capital expenditure and regulatory scrutiny. During the earnings call following the quarter in question, Alphabet Chief Financial Officer Anat Ashkenazi signaled that the company expects to "significantly increase" spending on artificial intelligence infrastructure throughout 2026. This capital intensity has divided market observers. While some see it as a necessary defense of Google’s search hegemony, others worry about the impact on near-term margins and the sustainability of such massive outlays.
The decision by Sax Wealth Advisors to increase its stake does not necessarily reflect a broader Wall Street consensus. While many institutional managers remain overweight on "Magnificent Seven" stocks, the specific timing of this 16% increase suggests a preference for Alphabet’s relative valuation compared to its peers in the AI race. Skeptics, however, point to the rising costs of AI compute and the persistent losses in moonshot projects as reasons for caution. For now, the increased commitment from firms like Sax Wealth Advisors indicates that for some professional money managers, the growth in cloud and core search still outweighs the risks of a more expensive, AI-driven future.
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