bill ackmanfounder of pershing square capital managementexpresses confidence. Alphabet Co., Ltd. Google googleis the parent company of. Googleas a lucrative investment opportunity.
what happened: Ackman, computer scientist and technology YouTuber, in a recent conversation. lex fridman Last week, he gave a positive outlook for Alphabet. Asked about his analysis of the tech giant, Ackman highlighted the company’s strong position in the market, particularly in the field of AI.
“So this is a business that we’ve admired as a company for 15 years, but it’s almost never reached a price point where we felt like we could own it,” he said, “because again, expectations were… “Because it was so expensive, the price went up,” he added. It’s really important. ”
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He then spoke about the “fear of AI.” microsoft supported OpenAIand what I came up with is Chat GPT, and people started talking about “this most amazing product.” On the other hand, there was Google, which had been working on AI for a long time.
“Microsoft was behind in AI. In fact, it was because of their ChatGPT deal that they had a presence in the market. And once Google did this pretty disastrous demonstration of Bard… The world says, ‘Oh my God, Google is behind on AI. AI is the future,”’ he said.
“Stock prices are going to collapse. Google is trading at about 15 times earnings, which is a very low price for a business of this quality.”
But despite the fears of AI, Alphabet’s core business, search and YouTube The franchise remains highly profitable and difficult to disrupt, the billionaire investor said.
“So our view, based on the work we’ve done and conversations with industry experts, is that Google’s AI capabilities are superior because of the time Google has invested and the energy of its people. “We felt it could surpass Microsoft ChatGPT and the market may have overreacted,” he added.
The Pershing Square founder also pointed out that Alphabet’s advertising business is one of the most dominant in the world, giving it a huge advantage in the transition from offline to online advertising. Ackman expects this trend to continue due to advertisers’ high return on investment in online advertising.
Alphabet is part of the Magnificent 7, which is essentially a group of high-performing and influential companies in the U.S. stock market. Other companies in this group include Amazon; apple, meta platformMicrosoft, Nvidiaand tesla.
Why it’s important: In his conversation with Friedaman, Ackman also revealed his process for identifying companies with long-term, high-value investment potential. He emphasized the importance of non-disruptive businesses that allow investors to predict future values and profitability with confidence.
“So every consumer has a view on different brands and different companies. What we want is these non-disruptive businesses. “It’s the kind of business where you know that if you shut down for 10 years, you’ll be a more valuable, more profitable company 10 years later.”
Read next: Bill Ackman reveals the first investment book he read was the same book that influenced Warren Buffett: “That was kind of the inspiration for my career…”
Disclaimer: This content was created in part with the help of: Benzinga Neuro Reviewed and published by Benzinga editors.
Photo courtesy of New York City Jewish History Center, via Wikimedia Commons
