Billionaire Bill Ackman Just Sold This Hot Artificial Intelligence Stock. Here's Why Wall Street Thinks He Made a Big Mistake.

Core Viewpoint - Bill Ackman sold a significant portion of his stake in Alphabet Class A shares, which has raised eyebrows among analysts who believe it was a mistake given the stock's strong performance and bullish outlook from Wall Street [2][5][10]. Group 1: Ackman's Investment Actions - In Q3 2025, Ackman did not initiate any new positions or increase existing holdings, but reduced stakes in four stocks, including a notable sale of over 519,000 shares of Alphabet Class A, decreasing his position by approximately 9.7% [2][4]. - Ackman's hedge fund, Pershing Square, still maintains a substantial investment in Alphabet, holding over 11 million shares valued at around $3.3 billion [10]. Group 2: Wall Street's Perspective on Alphabet - A survey by S&P Global revealed that none of the 66 analysts covering Alphabet recommended selling the stock, with 12 analysts rating it as a "strong buy" and 45 assigning a "buy" rating [7][8]. - Alphabet reported impressive Q3 results, with revenue of $102.3 billion, a 16% year-over-year increase, and earnings rising 33% to approximately $35 billion [8]. Group 3: Alphabet's AI and Future Prospects - Alphabet's advancements in AI, particularly with Google Search and the Gemini large language model, have contributed to its strong market position, with over 650 million monthly active users for Gemini [9][11]. - The launch of Google Gemini 3.0 is expected to enhance Google Cloud's growth, while the Waymo unit is expanding its autonomous ride-hailing services [11][12]. - Alphabet's Google Quantum AI has achieved significant milestones in quantum computing, indicating potential for future applications [12].