New York: Billionaire investor Bill Ackman sold Alphabet shares on May 16, 2026, to fund a new Microsoft position. He clarified the sale was not a bet against Google’s parent company.
Ackman explained on X that Pershing Square remains “very bullish long term on Alphabet.”
He added that the sale freed capital to buy Microsoft, whose stock recently dipped. Consequently, this offered a better entry point.
Alphabet’s Class C shares (GOOG) trade around $393, giving it a $4.79 trillion market cap and a trailing P/E of 30.0x. Meanwhile, Q1 2026 revenue rose 22% year-on-year to $109.9 billion.
Google Cloud revenue surged 63% to $20 billion. Net income climbed to $62.58 billion, up from $34.54 billion in Q1 2025.
Microsoft shares fell about 10% after earnings. Ackman purchased a $2.3–$2.4 billion stake and described it as a “core holding.”
This move reallocated capital within Pershing Square’s concentrated portfolio of 10–12 high-conviction positions.
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The decision reflects opportunity cost management. Because Pershing Square holds a finite amount of capital, Ackman rotated from a fully valued Alphabet to Microsoft, which offered higher short-term upside.
Analysts note that both Alphabet and Microsoft remain leaders in AI and cloud infrastructure. Ackman’s move highlights how institutional investors manage concentrated portfolios.
He emphasised Alphabet’s long-term strength in search, YouTube, and AI computing, while seizing the Microsoft dip. Thus, the reallocation is a strategic, not bearish, decision.
