Bill Ackman’s Pershing Square Capital Management Exits Alphabet to Invest in Two Undervalued Stocks

Key Points

• Pershing Square Capital Management, led by Bill Ackman, closed its position in Alphabet (NASDAQ: GOOGL) during Q2 2023.

• The hedge fund invested in Meta Platforms (NASDAQ: META) and initiated a position in Netflix (NASDAQ: NFLX) during the same quarter.

• Meta’s revenue rose 28% year-over-year to $60.8 billion, but its earnings per share dropped 13% to $6.18. Netflix continues to dominate the streaming market with the highest number of paying subscribers.

Pershing Square Capital Management’s Bill Ackman made headlines in Q2 2023 by liquidating its investment in Alphabet, a major player in the tech industry. Instead, the hedge fund acquired additional shares in Meta Platforms and started a new position in Netflix, catering to their future growth potential. Meta’s recent performance includes a 28% increase in revenue year-over-year, totaling $60.8 billion, despite a 13% drop in earnings per share.

Netflix, while facing increased competition, remains well-positioned within the streaming industry, benefitting from an extensive subscriber base. The company’s previous strategy of adapting to market challenges offers a hopeful outlook for future performance.