Ackman and Tepper Bet on Alphabet's AI Potential Despite Premium Valuation
-
Bill Ackman and David Tepper both own stock in Alphabet (Google's parent company), the only AI stock they both own.
-
Ackman invested in Alphabet because of its attractive valuation and position as a dominant long-term player in AI. His fund owns over 13.7 million Alphabet shares.
-
Tepper's fund has been steadily buying Alphabet shares over the past 3 quarters and likely owns over 2.75 million shares now.
-
Alphabet recently launched its Gemini Ultra 1.0 AI model which beats OpenAI's GPT-4 on some metrics and has potential for revenue growth.
-
Some downsides are Alphabet's high valuation (21.6x earnings) but its growth prospects in advertising, cloud, and AI justify the premium price for investors.