Bill Ackman Bullish on Alphabet Inc. (GOOGL) Despite Massive Cut in Stake

Alphabet Inc. (NASDAQ:GOOGL) is included in our list of the 9 best stocks to buy according to billionaire Bill Ackman, representing 13.83% of the total portfolio (including both Class A and C shares).

While keeping a sizable holding in Alphabet Inc. (NASDAQ:GOOGL), Bill Ackman's hedge fund reduced its exposure to the digital giant.

Ackman sold about 4.33 million shares of the company during the fourth quarter of 2025, leaving him with over 6.84 million shares (both classes of shares included) by the end of the quarter. The fund's ongoing faith in the company's long-term potential is evident from its remaining investment of over $2.15 billion.

In his Letter to Shareholders from February 2026, Ackman cited Alphabet Inc. (NASDAQ:GOOGL)’s growing leadership in AI as a key growth driver. He emphasized how Google is deploying AI solutions worldwide by utilizing its scale in data, infrastructure, and distribution. He highlighted AI Overviews as a prime example, which currently reaches over two billion people in 200 countries, boosting search engagement and query growth, especially among younger groups.

Alphabet Inc. (NASDAQ:GOOGL)'s AI innovation pipeline, which includes work from its research arm Google DeepMind, was highlighted by Ackman, who remains confident in the integration of Gemini models into the larger Google ecosystem. With a $70 billion sales run-rate and growing profitability, the company's cloud division is another key growth engine, according to the firm.

Analyst sentiment remains strong as of March 5, 2026, mirroring the fund’s expectations. While no significant insider trading activity has been disclosed recently, Alphabet Inc. (NASDAQ:GOOGL) enjoys a bullish stance of nearly 90% of covering analysts, with a consensus price target of $385.00, suggesting a 30% upside.

Alphabet Inc. (NASDAQ:GOOGL) operates as a technology holding company that runs Google Services, Google Cloud, and Other Bets. Its ecosystem comprises Search, YouTube, Android, and Maps, and it offers digital advertising, cloud infrastructure, and new technology solutions worldwide.

While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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