Posted 1/5/2024, 11:15:00 AM
Ackman: Alphabet's Undervalued AI Business Could Be a 'Free' Acquisition
- Bill Ackman believes Alphabet's AI business is overlooked and can be acquired "for free" based on the company's low valuation
- Alphabet faces headwinds in its core advertising business from the economy, competition from TikTok and Meta, and especially from Microsoft
- However, Alphabet has invested its advertising profits into cloud computing and AI
- Alphabet's cloud business is growing over 25% annually and becoming profitable, while integrating more AI
- With Alphabet trading at just 20x forward earnings compared to Apple at 28x and Microsoft at 33x, its AI progress seems underappreciated