Latest news with #PershingSquare
Yahoo
a day ago
- Business
- Yahoo
Billionaire Bill Ackman Sells Alphabet (Google) and Buys a Robotaxi Stock Up 266% Since 2023 (Hint: Not Tesla)
Key Points Hedge fund billionaire Bill Ackman sold shares of Alphabet and took a substantial stake in Uber during the first quarter. Alphabet is gaining market share in cloud computing due to expertise in artificial intelligence (AI), but the company is battling antitrust lawsuits Uber is the most logical partner for autonomous driving companies looking to launch robotaxi services because it dominates the global ride-sharing market. 10 stocks we like better than Alphabet › Billionaire Bill Ackman is a prominent hedge fund manager well known for holding a relatively small number of high-conviction stocks. His firm, Pershing Square Capital Management, currently has $12 billion invested in 11 companies. Ackman made a few interesting capital allocation decisions in the first quarter. He sold shares of megacap Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) and bought Uber Technologies (NYSE: UBER), a stock that has returned 266% since January 2023. The trades are detailed below: He sold 772,000 shares of Alphabet, trimming his position 7%. That is surprising because most analysts viewed the stock as undervalued throughout the first quarter, and the same is true today. The median target price of $200 per share implies 9% upside from Alphabet's current share price of $183. He bought 30.3 million shares of Uber, now his largest holding at 19% of the portfolio. Ackman explained his confidence on social media, praising the leadership of CEO Dara Khosrowshahi and calling Uber "one of the best-managed and highest-quality businesses in the world." Here's what investors should know about Alphabet and Uber. Alphabet: The stock Bill Ackman sold in the first quarter Alphabet is the largest adtech company in the world. Popular web properties like Google Search and YouTube helped the company capture more than a third of global digital ad spending last year, roughly equivalent to its market share in the previous year. However, the company is projected to lose share as competitive pressure intensifies in the future. To elaborate, Amazon has become a formidable player in the digital advertising industry due to its ability to engage shoppers, and the company is likely to take share in the future as businesses spend more on retail advertising. But generative artificial intelligence (AI) platforms like OpenAI and Perplexity also threaten to siphon ad dollars away from Alphabet. Alphabet's Google is the third-largest public cloud in terms of infrastructure and platform services (CIPS) revenue. It captured 12% of CIPS spending in the first quarter of 2025, up from 11% last year, according to Synergy Research. As a recognized leader in AI infrastructure, large language models, and data science platforms, the company may continue to gain share in future quarters. Beyond its core businesses, Alphabet's Waymo is an early leader in autonomous driving technology. It already provides commercial autonomous ride-sharing services in five U.S. cities and plans to launch in at least two more next year. Waymo is also testing its robotaxi fleet in several other U.S. cities. Management said in April the company currently delivers more than 250,000 paid rides per week. Looking ahead, eMarketer estimates digital ad spending will grow at 10% annually through 2028, and Grand View Research expects the cloud computing market to increase at 20% annually through 2030. Collectively, Alphabet has a good shot at low-double-digit annual sales growth through the end of the decade, with room for upside if its robotaxi business continues to gain momentum. Wall Street estimates Alphabet's earnings will increase at 14% annually over the next three to five years. That makes the current valuation of 20.5 times earnings look reasonable. But investors should be aware that Alphabet is currently caught into two legal battles, and the associated risks may explain why Ackman trimmed his position in the first quarter. To elaborate, courts have already determined Alphabet has an illegal monopoly in internet search and adtech software, and the cases have moved into the remedies phase. While a breakup seems unlikely, the Justice Department wants Alphabet to divest certain parts of its business. A federal judge will decide on the remedy for its internet search monopoly in August, and the remedies hearing regarding its adtech software will begin in September. Uber: The stock Bill Ackman bought in the first quarter Uber has a strong presence in the mobility and food delivery markets. Specifically, it is the largest ride-sharing platform and the second-largest food delivery platform in the U.S., as measured by sales. More broadly, Uber operates the largest ride-sharing platform in the 10 largest markets worldwide, and the largest food delivery service in eight of the top 10 markets. That makes Uber a logical partner for autonomous vehicle (AV) companies. CEO Dara Khosrowshahi sees robotaxis as at $1 trillion opportunity in the U.S. alone, and he recently told analysts, "Uber can deliver the lowest operational costs for our AV partners because we are leaps and bounds ahead on every aspect of the go-to-market capabilities." Indeed, Uber has already partnered with several companies that have either launched or plan to launch robotaxi services in the near future. The most conspicuous exception is Tesla, but several consequential partnerships are detailed below: Alphabet's Waymo offers robotaxi rides through Uber in Phoenix, Austin, and Atlanta. Also, autonomous food delivery is available through Uber Eats in Phoenix. May Mobility will offer robotaxi rides through Uber in Arlington, Texas, by the end of 2025. The companies will take their partnership to additional U.S. markets in 2026. Pony AI will offer robotaxi rides through Uber in a "key market in the Middle East" this year, with a goal of scaling to additional international markets in the future. Volkswagen will offer robotaxi rides through Uber in Los Angeles. Testing is scheduled to start later this year, and the commercial launch will follow in 2026. WeRide offers robotaxi rides through Uber in Abu Dhabi, with Dubai to follow later this year. The companies will expand the partnership to 15 additional cities in the next five years. Wall Street estimates Uber's earnings will increase at 25% annually over the next three to five years. That makes the current valuation of 15.9 times earnings look relatively cheap. I think investors should follow Ackman's lead and take a stake in Uber stock, though I would start with a small position. Should you invest $1,000 in Alphabet right now? Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Tesla, and Uber Technologies. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy. Billionaire Bill Ackman Sells Alphabet (Google) and Buys a Robotaxi Stock Up 266% Since 2023 (Hint: Not Tesla) was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
a day ago
- Business
- Globe and Mail
Billionaire Bill Ackman Sells Alphabet (Google) and Buys a Robotaxi Stock Up 266% Since 2023 (Hint: Not Tesla)
Key Points Hedge fund billionaire Bill Ackman sold shares of Alphabet and took a substantial stake in Uber during the first quarter. Alphabet is gaining market share in cloud computing due to expertise in artificial intelligence (AI), but the company is battling antitrust lawsuits Uber is the most logical partner for autonomous driving companies looking to launch robotaxi services because it dominates the global ride-sharing market. 10 stocks we like better than Alphabet › Billionaire Bill Ackman is a prominent hedge fund manager well known for holding a relatively small number of high-conviction stocks. His firm, Pershing Square Capital Management, currently has $12 billion invested in 11 companies. Ackman made a few interesting capital allocation decisions in the first quarter. He sold shares of megacap Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) and bought Uber Technologies (NYSE: UBER), a stock that has returned 266% since January 2023. The trades are detailed below: He sold 772,000 shares of Alphabet, trimming his position 7%. That is surprising because most analysts viewed the stock as undervalued throughout the first quarter, and the same is true today. The median target price of $200 per share implies 9% upside from Alphabet's current share price of $183. He bought 30.3 million shares of Uber, now his largest holding at 19% of the portfolio. Ackman explained his confidence on social media, praising the leadership of CEO Dara Khosrowshahi and calling Uber "one of the best-managed and highest-quality businesses in the world." Here's what investors should know about Alphabet and Uber. Alphabet: The stock Bill Ackman sold in the first quarter Alphabet is the largest adtech company in the world. Popular web properties like Google Search and YouTube helped the company capture more than a third of global digital ad spending last year, roughly equivalent to its market share in the previous year. However, the company is projected to lose share as competitive pressure intensifies in the future. To elaborate, Amazon has become a formidable player in the digital advertising industry due to its ability to engage shoppers, and the company is likely to take share in the future as businesses spend more on retail advertising. But generative artificial intelligence (AI) platforms like OpenAI and Perplexity also threaten to siphon ad dollars away from Alphabet. Alphabet's Google is the third-largest public cloud in terms of infrastructure and platform services (CIPS) revenue. It captured 12% of CIPS spending in the first quarter of 2025, up from 11% last year, according to Synergy Research. As a recognized leader in AI infrastructure, large language models, and data science platforms, the company may continue to gain share in future quarters. Beyond its core businesses, Alphabet's Waymo is an early leader in autonomous driving technology. It already provides commercial autonomous ride-sharing services in five U.S. cities and plans to launch in at least two more next year. Waymo is also testing its robotaxi fleet in several other U.S. cities. Management said in April the company currently delivers more than 250,000 paid rides per week. Looking ahead, eMarketer estimates digital ad spending will grow at 10% annually through 2028, and Grand View Research expects the cloud computing market to increase at 20% annually through 2030. Collectively, Alphabet has a good shot at low-double-digit annual sales growth through the end of the decade, with room for upside if its robotaxi business continues to gain momentum. Wall Street estimates Alphabet's earnings will increase at 14% annually over the next three to five years. That makes the current valuation of 20.5 times earnings look reasonable. But investors should be aware that Alphabet is currently caught into two legal battles, and the associated risks may explain why Ackman trimmed his position in the first quarter. To elaborate, courts have already determined Alphabet has an illegal monopoly in internet search and adtech software, and the cases have moved into the remedies phase. While a breakup seems unlikely, the Justice Department wants Alphabet to divest certain parts of its business. A federal judge will decide on the remedy for its internet search monopoly in August, and the remedies hearing regarding its adtech software will begin in September. Uber: The stock Bill Ackman bought in the first quarter Uber has a strong presence in the mobility and food delivery markets. Specifically, it is the largest ride-sharing platform and the second-largest food delivery platform in the U.S., as measured by sales. More broadly, Uber operates the largest ride-sharing platform in the 10 largest markets worldwide, and the largest food delivery service in eight of the top 10 markets. That makes Uber a logical partner for autonomous vehicle (AV) companies. CEO Dara Khosrowshahi sees robotaxis as at $1 trillion opportunity in the U.S. alone, and he recently told analysts, "Uber can deliver the lowest operational costs for our AV partners because we are leaps and bounds ahead on every aspect of the go-to-market capabilities." Indeed, Uber has already partnered with several companies that have either launched or plan to launch robotaxi services in the near future. The most conspicuous exception is Tesla, but several consequential partnerships are detailed below: Alphabet's Waymo offers robotaxi rides through Uber in Phoenix, Austin, and Atlanta. Also, autonomous food delivery is available through Uber Eats in Phoenix. May Mobility will offer robotaxi rides through Uber in Arlington, Texas, by the end of 2025. The companies will take their partnership to additional U.S. markets in 2026. Pony AI will offer robotaxi rides through Uber in a "key market in the Middle East" this year, with a goal of scaling to additional international markets in the future. Volkswagen will offer robotaxi rides through Uber in Los Angeles. Testing is scheduled to start later this year, and the commercial launch will follow in 2026. WeRide offers robotaxi rides through Uber in Abu Dhabi, with Dubai to follow later this year. The companies will expand the partnership to 15 additional cities in the next five years. Wall Street estimates Uber's earnings will increase at 25% annually over the next three to five years. That makes the current valuation of 15.9 times earnings look relatively cheap. I think investors should follow Ackman's lead and take a stake in Uber stock, though I would start with a small position. Should you invest $1,000 in Alphabet right now? Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Tesla, and Uber Technologies. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.
Yahoo
4 days ago
- Business
- Yahoo
Hall No: Billionaire Ackman's $10M Offer to Tennis HOF Declined
Days after Bill Ackman lost his first professional tennis match, the 59-year-old billionaire hedge fund investor offered a $10 million endowment to the International Tennis Hall of Fame—the same organization that invited him and doubles partner Jack Sock to its annual tournament. 'The HOF is an incredible venue, museum, and tourist attraction, and most people, even tennis fans, didn't even know it existed until last week,' Ackman posted on X Sunday. 'It relies on charitable funding for its existence as a non-profit. So each year the HOF has to go find corporate sponsors and donations to stay solvent, a not so easy task.' More from Wimbledon Makes Half a Billion Dollars Over Two Weeks Each Year Billionaire Hedge Fund Investor Bill Ackman Loses Pro Tennis Debut Alcaraz Outlasts Sinner to Win French Open, $2.9M in Prize Money However, the organization has turned down Ackman's offered donation, a spokesperson confirmed to Sportico Wednesday. Sports Illustrated tennis writer Jon Wertheim first reported the decision, writing that the Hall of Fame passed to avoid 'any potential perception of impropriety.' In making his offer, Ackman explained that 'many … claimed that I bribed the HOF for the wildcard, which is entirely untrue.' Ackman has donated to the organization in the past—he and his Pershing Square Foundation are members of the Hall of Fame's 'Founder's Circle,' an honor given to 'philanthropic leaders whose passion and devotion have preserved and sustained this historic property and institution.' But he said online he had not done so 'in recent years.' A Pershing Square representative did not respond to a request for additional details on Ackman's relationship with the ITHOF. After being granted a wild-card slot, Sock and Ackman lost in the first round of the Hall of Fame Open doubles tournament in Newport, R.I., 6-1, 7-5, to Australians Omar Jasika and Bernard Tomic. Clips of Ackman's low points on the court soon went viral, followed by complaints that he was undeserving of the stage. ITHOF enshrinee Andy Roddick called the match 'the biggest joke I've ever watched in professional tennis.' Ackman has offered several defenses for his lowlights. His partner wanted him to play on the side of the court he was left comfortable on, he had not previously served against a shot clock, the 1:30 p.m. sun presented its own challenges—'and to make matters worse,' Ackman wrote online on the day of the Wimbledon men's singles final, 'the other side held back making the whole thing look like a farce.' He wrote, 'Where things went wrong is that I hadn't been beta tested in a professional tournament and my nerves got to me.' Amid the fallout, Ackman also challenged Roddick to a match. According to the organization's tax filings, the ITHOF generated $32.7 million in 2023 revenue, with $94.1 million in total assets. Ackman's offer would have sent 5% of a $10 million endowment invested in his hedge fund, Pershing Square, to the organization each year. He asked that the money be used to promote youth interest in tennis. 'The HOF engineered one of the greatest public relations achievements in tennis history,' Ackman wrote on X. 'My failure on the court contributed to its success. That sounds like a grand slam to me.' Best of Panthers Win Second Stanley Cup Under Owner Vincent Viola Top 50 Highest-Paid Athletes of All Time Highest-Paid Athletes in the World: Full List
Yahoo
5 days ago
- Business
- Yahoo
Tucker Carlson Asks How Did 'Well-Connected And Super Aggressive' Bill Ackman Get His $9 Billion, Pershing Square Founder Fires Back At Epstein Smear: 'Owes Me An Apology'
On Sunday, Pershing Square founder Bill Ackman posted a scathing rebuttal after Tucker Carlson implied he was part of Jeffrey Epstein's inner circle and questioned the legitimacy of his $9 billion fortune. What Happened: Ackman was responding to Carlson's remarks at Turning Point USA, where the former Fox News host referred to Ackman as one of the useless billionaires allegedly connected to Epstein. "How did Bill Ackman get $9 billion?" Carlson asked. "Bill Ackman is like well-connected and super aggressive; that's it."Trending: GoSun's Breakthrough Rooftop EV Charger Already Has 2,000+ Units Reserved — Ackman, in a lengthy post on X, rejected the allegation and said he has never met Epstein, nor attended any of his parties or flown on his planes. He stated that his wife met Epstein once before they met, during her time as a professor at the Massachusetts Institute of Technology. "If this is why Tucker thinks I am in Jeffrey Epstein's constellation, it's clear he doesn't know anything about astronomy," Ackman wrote. Ackman also provided a detailed account of how he built his wealth through investing, citing his early cold calls to Forbes 400 members, the founding of Gotham Partners and the compounding returns at Pershing Square. He concluded by calling Carlson's comments defamatory and dishonest. "Tucker owes me an apology. I know I am not going to get one because he is not man enough to care about the truth," Ackman to Bloomberg's Billionaire Index, Ackman currently has a net worth of $8.22 billion. Ackman and Carlson did not immediately respond to Benzinga's request for It's Important: The controversy over the Epstein files continues to escalate, with prominent figures such as Elon Musk weighing in with major statements. Musk has been calling for the full, unredacted release of the Epstein documents, particularly after saying that President Donald Trump is mentioned in them. Musk later withdrew the statement and removed the post from X Microsoft Corporation's co-founder, Bill Gates, has also repeatedly voiced remorse over his ties to Epstein, who was found dead in his jail cell in 2019, with the death ruled a suicide. The Department of Justice memo released last week found no evidence of foul play in Epstein's 2019 death and rejected claims of a "client list," frustrating many Trump supporters who had hoped for additional revelations. Photo Courtesy: Maxim Elramsisy on Read Next: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — And You Can Invest At Just $6.37/Share These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Tucker Carlson Asks How Did 'Well-Connected And Super Aggressive' Bill Ackman Get His $9 Billion, Pershing Square Founder Fires Back At Epstein Smear: 'Owes Me An Apology' originally appeared on Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Billionaire Bill Ackman Has 14% of His Hedge Fund in 1 AI Stock That's Up 6,930%
Bill Ackman's hedge fund, Pershing Square Capital Management, has made a successful bet on this leading AI enterprise. With access to massive amounts of data, incredibly popular products and services, and unmatched financial resources, this business will remain in a position of power. Despite very favorable characteristics, investors can buy shares at a discount to the S&P 500. 10 stocks we like better than Alphabet › Billionaire Bill Ackman, who follows an investment philosophy similar to Warren Buffett, has exposure in his Pershing Square Capital Management hedge fund to the artificial intelligence (AI) boom. That might go against his firm's usual focus of buying retail-based businesses. But since this particular company had its initial public offering in 2004, shares have risen 6,930% (as of July 9). Had you made a $1,000 investment in this top AI stock back then, you'd have about $70,000 today. Continue reading to learn what business this is and whether or not it should be in your portfolio. Through both Class A and Class C shares, Pershing Square had 14% of its assets (as of March 31) in Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). The hedge fund first purchased the stock in the first quarter of 2023, at a time when the company was losing investor interest as OpenAI's ChatGPT became the talk of the town. There were concerns Alphabet had already lost the AI race. But in typical fashion, being greedy when others are fearful, Ackman became an Alphabet shareholder. The billionaire highlighted many of the company's favorable qualities as they relate to AI. Pershing Square called out Google's distribution advantage, with the habits consumers have of using Alphabet's products and services. The business also has unrivaled data to train AI models on. And Alphabet has been at the forefront of AI for several years, not just hopping on the bandwagon recently like many others have. More than two years since Ackman bought the stock, Alphabet remains a power player in the AI world. It has a leading family of models in Gemini. Its crown jewel, Google Search, has an AI Overviews feature that now has 1.5 billion monthly users. And the Google Cloud Platform offers a long list of AI tools to clients, which should register strong demand. "All 15 of our products with a half a billion users now use Gemini models," CEO Sundar Pichai said on the first-quarter 2025 earnings call. But perhaps most importantly, Alphabet has the financial resources to stay ahead. Management plans to spend $75 billion on capital expenditures this year. That's a lot of money. However, when the business generates tens of billions of dollars in net income each quarter, having large capital expenditures is easy. There is certainly a lot of hype surrounding the AI craze. Some forecasters think this technology will completely upend entire industries, drastically cut jobs, and/or provide a substantial boost to economic productivity. It's really anyone's guess what the long-term implications will be. Things will take time to play out. But here's why Alphabet is in such an enviable position. Even before AI started getting all the attention, Alphabet already had some of the most popular and widely used internet properties on the face of the planet. Management is simply leveraging AI to better serve users, which is a smart strategic decision regardless of how you view this technology's future. Despite Alphabet's powerful position in the tech world, especially when it comes to AI, the market still doesn't fully appreciate the company. Maybe there are still worries about how AI will ultimately impact Google Search, the company's top moneymaker. Additionally, Alphabet remains in the crosshairs of regulatory bodies, adding uncertainty to the mix. The stock currently trades at a price-to-earnings ratio of 19.8, reflecting some level of pessimism. That's significantly below its trailing-five-year average of 25.5. And it shows that shares are selling at a multiple that's much cheaper than that of the overall S&P 500 index. Investors have the chance to buy an AI leader at a discount today. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy. Billionaire Bill Ackman Has 14% of His Hedge Fund in 1 AI Stock That's Up 6,930% was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
