Shares of Alphabet Inc. ( GOOG ) are trading higher Monday after legendary investor Warren Buffett took a stake in the tech company.

GOOG stock is racing ahead of the pack. See what is driving the movement here.

What To Know: Buffett’s Berkshire Hathaway took a new position in Alphabet in the third quarter, the firm’s only new investment of the period. Berkshire purchased 17.85 million shares of the Google ( GOOG ) parent company, per an SEC filing from Friday.

Berkshire’s stake in Google ( GOOG ) is now worth about $4.9 billion, making it the company’s 10th largest equity investment.

Alphabet stock hit new all-time highs in early trading on Monday before paring some gains, according to Benzinga Pro.

The move from Berkshire is significant given that the Buffett-led firm has previously stayed away from investing in tech stocks. The firm previously argued that its Apple stake is more of a consumer-products investment, per Reuters.

Buffett is set to step down from his role as CEO of Berkshire Hathaway at the end of the year.

GOOG Analysis: Alphabet is trading approximately 12.9% above its 50-day moving average of $257.83 and a significant 46.8% above its 200-day moving average of $198.27. This upward trend indicates strong investor confidence and a positive outlook for the stock, as it consistently outperforms both short- and long-term averages. The Relative Strength Index (RSI) at 55.82 suggests that the stock is in a neutral zone, indicating potential for further upward movement without being overbought.

The calculated support level stands at $276.86, which aligns closely with the previous close of $276.98, providing a solid foundation for the stock should it experience any pullbacks. The immediate resistance level is at $291.93, just above the current trading price, which could serve as a psychological barrier for traders looking to capitalize on the stock’s momentum.

GOOG Price Action: Alphabet shares were up 4.3% at $288.91 at the time of publication on Monday, according to Benzinga Pro.

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