Billionaire Bill Ackman Has 14% of His $12 Billion Hedge Fund in 1 Top AI Stock

Group 1: Company Overview - Pershing Square Capital Management, founded by Bill Ackman, focuses on high-quality businesses and concentrated investments [1] - As of March 31, Pershing Square's portfolio was valued at $12 billion, with 14% invested in a leading AI stock, which has increased by 143% over the past five years [2] - Alphabet has been a leader in AI development for over a decade, integrating AI into its products and services [4] Group 2: Recent Developments - At the recent Google I/O developer conference, Alphabet announced new AI features, including Gemini Agent Mode for delegating complex tasks to AI [5] - The company is collaborating with Warby Parker to create AI smart glasses, indicating a strategic shift towards AI as a core component of its business [6] - Alphabet's ad sales rose by 8% year-over-year in Q1, demonstrating its ability to adapt and monetize AI technologies [7] Group 3: Financial Performance - Alphabet reported $35 billion in net income and $19 billion in free cash flow in the first quarter, with $95 billion in cash and marketable securities as of March 31 [11] - Despite a 9% decline in share price this year, Alphabet exceeded Wall Street expectations for revenue and earnings per share in Q1 [12] - The current price-to-earnings ratio for Alphabet is 19.2, close to its lowest multiple in the past decade, presenting a potential investment opportunity [13] Group 4: Competitive Advantage - Alphabet's competitive position in the AI sector is strengthened by a powerful network effect, enhancing its products as more users engage with them [9] - The Google Search algorithm improves with increased search queries, while YouTube benefits from more viewership leading to diverse content [10]