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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GOOG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 386.120
Low
255.00
Averages
336.08
High
400.00
Current: 386.120
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.
First AI-Generated Feature Film to Premiere at 2026 Tribeca Film Festival
- Film Premiere: The first entirely AI-generated feature film, 'Dreams of Violets,' will debut at the Tribeca Film Festival on June 10, 2026, marking a significant moment as AI-generated live-action films gain recognition in major film festivals, potentially reshaping industry perceptions of AI creativity.
- Production Cost and Time: Produced by Fountain O and directed by Ash Koosha, the film took approximately three months and cost around $2,000 to create, utilizing tools like Anthropic's Claude AI and Kling AI, showcasing the potential and cost-effectiveness of AI in filmmaking.
- Story Background: The narrative follows five Iranians meeting in a Tehran alley, focusing on their execution under a theocratic regime, particularly through the eyes of a 10-year-old boy with cerebral palsy, aiming to create a memorial for families who cannot speak out.
- Director's Motivation: Koosha emphasized that the film exists to witness the dead and to ensure that families inside Iran are not forgotten, asserting that this project is not merely a technological exercise but a memorial for an event that remains inaccessible to him.
See More
Amazon's Layoffs Signal Cloud Expansion Strategy
- Layoff Scale and Impact: Amazon laid off 16,000 employees in January 2023, primarily affecting AWS, retail operations, Prime Video, and HR, as part of its goal to cut 30,000 jobs, demonstrating its commitment to optimizing resource allocation.
- AWS Market Position: According to Canalys, AWS controls nearly one-third of the global cloud infrastructure market, and despite layoffs, it remains Amazon's core profit engine, supporting the expansion of its lower-margin retail business, indicating its strong competitive advantage.
- Future Investment Plans: Amazon plans to increase its capital expenditures from $131.8 billion in 2025 to $200 billion in 2026, signaling its intent to expand cloud and AI infrastructure, suggesting that the layoffs are aimed at more efficient resource utilization rather than downsizing.
- AI Market Strategy: AWS not only provides infrastructure for top AI companies but also develops its own AI tools and custom chips, and the layoffs reflect Amazon's confidence in its AI-driven automation capabilities, indicating potential advantages in future market competition.
See More
Amazon's Layoffs and AI Strategy Shift
- Layoff Scale: Amazon has cut approximately 30,000 positions since last October, with 16,000 layoffs occurring this January primarily in AWS and other divisions, aimed at enhancing operational efficiency and reducing costs.
- AWS Market Position: AWS controls nearly a third of the global cloud infrastructure market, with net sales growing at a 23% CAGR from 2020 to 2025, and operating margins increasing from 29.8% to 35.4%, underscoring its strategic importance as Amazon's core profit engine.
- AI Investment Plans: Despite the layoffs, Amazon plans to increase its capital expenditures from $131.8 billion in 2025 to $200 billion in 2026, indicating a commitment to expanding its cloud and AI infrastructure while enhancing operational efficiency through AI tools.
- Long-term Growth Confidence: The layoffs at Amazon are not a sign of weakness but rather a demonstration of confidence in its AI-driven automation capabilities, indicating the company's strategy to maintain a competitive edge in a rapidly evolving market.
See More
Alphabet's AI Business Shows Strong Growth Potential
- Advertising Revenue Dominance: Alphabet reported $109.89 billion in advertising revenue for Q1 2026, a 22% year-over-year increase, with $77.25 billion coming from Google ads, highlighting its strong market leadership that will continue to fund AI investments.
- Rapid Cloud Growth: Google Cloud generated $20.02 billion in revenue in Q1, up 63% year-over-year, with operating income reaching $6.6 billion and operating margin improving from 17.8% to 32.9%, indicating that cloud computing is becoming a significant growth driver for Alphabet's future.
- Market Share Advantage: Google Search holds a 90% global market share, while the Chrome browser commands 68%, providing Alphabet with a robust competitive moat that ensures its continued leadership in the internet advertising space.
- TPU Sales Potential: Alphabet is selling its in-house designed TPU chips, which are tailored for machine learning and AI workloads, expected to create new revenue streams for Google Cloud, with a backlog of $462 billion poised for conversion into revenue over the next two years, further propelling company growth.
See More
Alphabet's Advertising Business Shows Strong Growth
- Advertising Revenue Dominance: Alphabet reported first-quarter revenue of $109.89 billion, a 22% year-over-year increase, with advertising contributing 81.5% of total revenue, highlighting the strength and market dominance of its advertising business.
- Rapid Cloud Growth: Google Cloud generated $20.02 billion in revenue in Q1, marking a 63% increase year-over-year, with operating income tripling and margins improving from 17.8% to 32.9%, indicating strong investor interest and growth potential in cloud services.
- AI-Driven Advertising Innovation: By deploying AI tools like Google Gemini, Alphabet significantly enhances ad quality and effectiveness, further solidifying its competitive edge in the global market and suggesting sustained growth in advertising revenue.
- Strong Order Backlog: Google Cloud's backlog reached $462 billion, with expectations to convert over half into revenue within two years, indicating substantial long-term growth potential and positive impacts on overall revenue.
See More
Meta Platforms: AI Investments Present New Opportunities
- Earnings Growth Potential: Meta Platforms has attracted over 3.5 billion users through its social media apps like Facebook, Instagram, and WhatsApp, leading to significant earnings growth driven by advertising revenue, which is expected to further enhance shareholder returns.
- AI Strategic Investment: Meta's substantial investments in AI, including building data centers and developing large language models, have been successfully integrated into its social media and advertising processes, likely improving ad effectiveness and increasing revenue while strengthening market competitiveness.
- New Revenue Streams: Meta has announced the rollout of consumer subscription plans that allow users to access special features, while also testing AI subscription services for businesses, which will provide a robust new revenue stream and cater to diverse user needs for future growth.
- Valuation Attractiveness: With a price-to-earnings ratio of 19, Meta is currently the cheapest among the Magnificent Seven, reflecting market caution regarding the monetization of its AI investments; however, as AI products are gradually launched, this could represent a key turning point for the stock.
See More
First AI-Generated Feature Film to Premiere at 2026 Tribeca Film Festival
- Film Premiere: The first entirely AI-generated feature film, 'Dreams of Violets,' will debut at the Tribeca Film Festival on June 10, 2026, marking a significant moment as AI-generated live-action films gain recognition in major film festivals, potentially reshaping industry perceptions of AI creativity.
- Production Cost and Time: Produced by Fountain O and directed by Ash Koosha, the film took approximately three months and cost around $2,000 to create, utilizing tools like Anthropic's Claude AI and Kling AI, showcasing the potential and cost-effectiveness of AI in filmmaking.
- Story Background: The narrative follows five Iranians meeting in a Tehran alley, focusing on their execution under a theocratic regime, particularly through the eyes of a 10-year-old boy with cerebral palsy, aiming to create a memorial for families who cannot speak out.
- Director's Motivation: Koosha emphasized that the film exists to witness the dead and to ensure that families inside Iran are not forgotten, asserting that this project is not merely a technological exercise but a memorial for an event that remains inaccessible to him.
See More
Amazon's Layoffs Signal Cloud Expansion Strategy
- Layoff Scale and Impact: Amazon laid off 16,000 employees in January 2023, primarily affecting AWS, retail operations, Prime Video, and HR, as part of its goal to cut 30,000 jobs, demonstrating its commitment to optimizing resource allocation.
- AWS Market Position: According to Canalys, AWS controls nearly one-third of the global cloud infrastructure market, and despite layoffs, it remains Amazon's core profit engine, supporting the expansion of its lower-margin retail business, indicating its strong competitive advantage.
- Future Investment Plans: Amazon plans to increase its capital expenditures from $131.8 billion in 2025 to $200 billion in 2026, signaling its intent to expand cloud and AI infrastructure, suggesting that the layoffs are aimed at more efficient resource utilization rather than downsizing.
- AI Market Strategy: AWS not only provides infrastructure for top AI companies but also develops its own AI tools and custom chips, and the layoffs reflect Amazon's confidence in its AI-driven automation capabilities, indicating potential advantages in future market competition.
See More
Amazon's Layoffs and AI Strategy Shift
- Layoff Scale: Amazon has cut approximately 30,000 positions since last October, with 16,000 layoffs occurring this January primarily in AWS and other divisions, aimed at enhancing operational efficiency and reducing costs.
- AWS Market Position: AWS controls nearly a third of the global cloud infrastructure market, with net sales growing at a 23% CAGR from 2020 to 2025, and operating margins increasing from 29.8% to 35.4%, underscoring its strategic importance as Amazon's core profit engine.
- AI Investment Plans: Despite the layoffs, Amazon plans to increase its capital expenditures from $131.8 billion in 2025 to $200 billion in 2026, indicating a commitment to expanding its cloud and AI infrastructure while enhancing operational efficiency through AI tools.
- Long-term Growth Confidence: The layoffs at Amazon are not a sign of weakness but rather a demonstration of confidence in its AI-driven automation capabilities, indicating the company's strategy to maintain a competitive edge in a rapidly evolving market.
See More
Alphabet's AI Business Shows Strong Growth Potential
- Advertising Revenue Dominance: Alphabet reported $109.89 billion in advertising revenue for Q1 2026, a 22% year-over-year increase, with $77.25 billion coming from Google ads, highlighting its strong market leadership that will continue to fund AI investments.
- Rapid Cloud Growth: Google Cloud generated $20.02 billion in revenue in Q1, up 63% year-over-year, with operating income reaching $6.6 billion and operating margin improving from 17.8% to 32.9%, indicating that cloud computing is becoming a significant growth driver for Alphabet's future.
- Market Share Advantage: Google Search holds a 90% global market share, while the Chrome browser commands 68%, providing Alphabet with a robust competitive moat that ensures its continued leadership in the internet advertising space.
- TPU Sales Potential: Alphabet is selling its in-house designed TPU chips, which are tailored for machine learning and AI workloads, expected to create new revenue streams for Google Cloud, with a backlog of $462 billion poised for conversion into revenue over the next two years, further propelling company growth.
See More
Alphabet's Advertising Business Shows Strong Growth
- Advertising Revenue Dominance: Alphabet reported first-quarter revenue of $109.89 billion, a 22% year-over-year increase, with advertising contributing 81.5% of total revenue, highlighting the strength and market dominance of its advertising business.
- Rapid Cloud Growth: Google Cloud generated $20.02 billion in revenue in Q1, marking a 63% increase year-over-year, with operating income tripling and margins improving from 17.8% to 32.9%, indicating strong investor interest and growth potential in cloud services.
- AI-Driven Advertising Innovation: By deploying AI tools like Google Gemini, Alphabet significantly enhances ad quality and effectiveness, further solidifying its competitive edge in the global market and suggesting sustained growth in advertising revenue.
- Strong Order Backlog: Google Cloud's backlog reached $462 billion, with expectations to convert over half into revenue within two years, indicating substantial long-term growth potential and positive impacts on overall revenue.
See More
Meta Platforms: AI Investments Present New Opportunities
- Earnings Growth Potential: Meta Platforms has attracted over 3.5 billion users through its social media apps like Facebook, Instagram, and WhatsApp, leading to significant earnings growth driven by advertising revenue, which is expected to further enhance shareholder returns.
- AI Strategic Investment: Meta's substantial investments in AI, including building data centers and developing large language models, have been successfully integrated into its social media and advertising processes, likely improving ad effectiveness and increasing revenue while strengthening market competitiveness.
- New Revenue Streams: Meta has announced the rollout of consumer subscription plans that allow users to access special features, while also testing AI subscription services for businesses, which will provide a robust new revenue stream and cater to diverse user needs for future growth.
- Valuation Attractiveness: With a price-to-earnings ratio of 19, Meta is currently the cheapest among the Magnificent Seven, reflecting market caution regarding the monetization of its AI investments; however, as AI products are gradually launched, this could represent a key turning point for the stock.
See More
