Scottish investment firm Baillie Gifford has had some huge stock market winners in recent years, including SpaceX, Tesla, and Amazon. Anyone invested in its growth funds – which include the Scottish Mortgage Investment Trust and the Baillie Gifford US Growth Trust – has most likely done very well.

What’s interesting is that recently, the company’s been piling into a well-known technology company that’s part of the Magnificent Seven. Here’s a look at the trade in more detail.

Baillie Gifford’s been buying Alphabet

Recently, I went through Baillie Gifford’s 13F filing for the second quarter of 2026. This is a regulatory filing that shows the US stocks that large investment managers bought and sold in the previous quarter and their holdings at the end of the quarter.

Now, the filing showed that in Q2, the firm bought a number of stocks. However, one name jumped out at me: Alphabet (NASDAQ: GOOG), the owner of Google and YouTube. In Q2, the firm bought 862,000 shares in the Big Tech company, increasing its holding by 44%. That’s a substantial increase.

It suggests that the firm sees an opportunity here right now. That said, at the end of the quarter, the stock only represented about 1% of its total US holdings so it hasn’t made a huge bet here.

A popular buy

It’s worth noting that Alphabet came up as a major Buy rating in a few other Q2 13F filings including those of:

• Berkshire Hathaway: Warren Buffett’s investment company increased the size of its Alphabet stake by 45% to make it one of its largest holdings.
• Blue Whale Capital: UK-based investment firm Blue Whale boosted its Alphabet position by 230% to make the stock a top holding in its high-performing Blue Whale Growth Fund.
• Duquesne Family Office: billionaire Stanley Druckenmiller’s family office started a new position in the stock, buying 336,000 shares.

So it’s been a popular stock to buy

Should investors consider buying?

Is the Mag 7 stock worth considering given all this buying activity from big-name investors? I reckon it is.

Today, this company’s far more than just a search engine business. It’s a diversified tech powerhouse with operations across a range of industries including cloud computing, AI, chips, video streaming, and self-driving cars meaning that it has many ways to win.

As for its valuation, it looks very reasonable to me. With analysts expecting earnings per share of $20.60 for 2026, the forward-looking price-to-earnings (P/E) ratio is under 17, which is below the US market average.

Note however, that earnings this year are likely to be boosted by the SpaceX and Anthropic IPOs as Alphabet was an investor in both companies. So earnings next year may fall year on year.

Now, there are plenty of risks here, of course. These include a drop in advertising spending and loss of cloud computing market share to competitors.

I like the risk/reward skew at current levels though. In my view, this stock’s definitely worth considering as a long-term investment.

Should you invest £5,000 in Alphabet right now?

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And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Alphabet made the list?

Edward Sheldon owns shares in Alphabet and Amazon and has positions in the Scottish Mortgage Investment Trust and the Blue Whale Growth fund.