Ackman Ditches Alphabet, Buys Beaten-Down AI Stocks

Billionaire investor Bill Ackman's hedge fund, Pershing Square Capital Management, has made significant changes to its portfolio in the second quarter. The company closed its position in Alphabet (GOOG, GOOGL), which had been performing well, posting accelerating sales growth in its cloud computing segment.

Ackman doubled down on Microsoft (MSFT) and Meta Platforms (META), both of which have declined by 3% over the past year. Despite recent obstacles, these tech companies are poised to capitalize on AI over the long run.

Microsoft's cloud computing business has driven its strong performance, with revenue from Foundry more than doubling year-over-year in its latest quarter. The company still has a wide moat thanks to switching costs and deep relationships with enterprises.