Key Points
-
Bill Ackman’s hedge fund, Pershing Square Capital Management, cut its stake in Alphabet by 86% during the fourth quarter, reallocating capital primarily to Amazon and Meta.
-
Ackman initiated a position in Amazon during the second quarter and bought an additional 3.8 million shares in the fourth quarter, totaling 9.6 million shares held.
-
He also purchased 2.7 million shares of Meta in the fourth quarter, citing its Advantage+ product’s potential to generate a $60 billion annual revenue run rate.
Bill Ackman’s Pershing Square Capital Management significantly reduced its Alphabet holdings during the fourth quarter, moving to increase exposure to Amazon and Meta. The hedge fund diminished its Class A shares in Alphabet by 86% and made strategic purchases, adding 3.8 million shares of Amazon, bringing the total to 9.6 million shares, alongside acquiring 2.7 million shares of Meta. This shift highlights Ackman’s belief in the growth potential of both companies in the evolving AI landscape.
Amazon Web Services currently holds a 28% market share of cloud infrastructure, while Google Cloud, owned by Alphabet, sits at 14%. Meta’s Advantage+ platform is driving a reported $60 billion in annual revenue, indicating strong future performance potential. The moves reflect a shift in Ackman’s investment strategy that aligns with long-term opportunities in AI amid recent market volatility affecting tech stocks.
