Ackman Sells Alphabet Shares, Not a Bet Against Company
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 16 2026
0mins
Source: Yahoo Finance
- Investment Strategy Shift: Billionaire investor Bill Ackman stated that the sale of shares in Google parent Alphabet was not a bearish move against the company, but rather a means to raise funds for investing in Microsoft, indicating his long-term bullish outlook on Alphabet.
- Funding Source Clarification: Ackman clarified on social media that the sale of Alphabet shares was a strategic decision to utilize his finite capital base to support his investment in Microsoft, reflecting a cautious stance on current market valuations.
- Microsoft Investment Opportunity: Following the sale of Alphabet, Ackman's firm Pershing Square established a new position in Microsoft, demonstrating confidence in tech stocks, particularly in light of Microsoft's recent stock price decline.
- Market Dynamics Analysis: Ackman's actions may influence market perceptions of Alphabet; while he emphasizes his long-term optimism for the company, the short-term capital movements could attract investor attention.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to fall
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 362.100
Low
255.00
Averages
336.08
High
400.00
Current: 362.100
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surge in Cloud Revenue: Google Cloud's revenue soared 63% year-over-year in Q1, demonstrating strong demand for its cloud services and validating Alphabet's substantial infrastructure investments as logical and necessary.
- Ongoing Customer Demand: With a growing number of external customers utilizing Google's computing infrastructure, Alphabet's cloud services are set to create a stable recurring revenue stream, ensuring long-term financial health for the company.
- Future Growth Potential: Alphabet's commitment to increasing capital expenditures in 2027 reflects confidence in the cloud computing market, positioning Google Cloud to potentially become one of the company's largest segments, thereby reducing reliance on advertising revenue.
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- Rapid Cloud Growth: Google Cloud's revenue surged 63% year-over-year in Q1, indicating robust market demand in the cloud sector, which is expected to provide Alphabet with a sustained revenue stream.
- Stable Revenue Source: The usage-based pricing model of cloud computing requires clients to continuously pay for access to computing power, providing Alphabet with a stable and predictable revenue source, thereby reducing reliance on the volatility of its advertising business.
- Optimistic Future Outlook: Alphabet's plan to significantly increase capital expenditures again in 2027 indicates a persistent gap between supply and demand for computing power, which could propel Google Cloud to become one of Alphabet's largest segments, further boosting investor confidence.
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- Strong Stock Performance: On its IPO day, SpaceX's stock opened at $135 and closed at $161, representing a 19% gain, with the stock peaking at $229.40 shortly thereafter, indicating investor confidence in its growth potential.
- Revenue Growth Potential: SpaceX's revenue is expected to more than double due to recent compute deals with Anthropic and Alphabet, while Starlink's revenue grew by 50% year-over-year in 2025, boasting a 63% adjusted EBITDA margin, highlighting significant market opportunities.
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- Revenue Growth Potential: SpaceX's revenue is expected to more than double due to recent compute deals with Anthropic and Alphabet, while Starlink achieved a 50% year-over-year growth in 2025 with a 63% adjusted EBITDA margin, indicating significant untapped market opportunities.
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- Diverse Product Portfolio: Broadcom also offers a wide range of non-AI chips across mobile, data center, and networking sectors; while these segments are not growing as rapidly, bundling products can lock in customers and widen its competitive moat across various markets.
- Attractive Investment Value: Analysts forecast Broadcom's revenue and EPS to grow at CAGRs of 53% and 66% from fiscal 2025 to 2028, yet it trades at just 25 times next year's earnings, indicating a compelling investment opportunity relative to its growth rate in the booming AI market.
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- Significant Sales Growth: In fiscal 2025, Broadcom's AI chip sales surged 65% to $20 billion, accounting for 31% of total revenue, with projections to reach at least $100 billion by fiscal 2027, representing over 58% of revenue, indicating strong market demand and growth potential.
- Increased Customer Demand: As the AI market expands, Broadcom's hyperscale customers are expected to ramp up chip purchases, reducing infrastructure costs and long-term dependence on Nvidia by installing more custom ASICs, thereby further solidifying their market position.
- Relative Valuation Advantage: Despite the rapid growth of Broadcom's AI chip business, it trades at just 25 times next year's earnings, making it relatively cheap compared to Nvidia's 16 times, attracting long-term investors' attention.
- Diverse Product Portfolio: Broadcom also sells a wide range of non-AI chips and infrastructure software, which, although growing slower, allows the company to bundle products, lock in customers, and expand competitive advantages across multiple markets, enhancing its market moat.
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