Wall Street Remains Bullish on Alphabet Despite Ackman's Recent Portfolio Trim

The Market’s Overwhelming Confidence in AI Leadership

In November 2025, S&P Global conducted a survey of 66 analysts covering Alphabet, revealing a striking consensus: zero analysts recommended selling the stock. Not a single dissenting voice calling for exits. Instead, the Street stands firmly in Alphabet’s corner, with 12 analysts assigning “strong buy” ratings and 45 issuing “buy” recommendations. Only 9 analysts suggested holding positions rather than adding.

This overwhelming bullishness reflects Wall Street’s conviction about Alphabet’s AI positioning and near-term business momentum. The company posted Q3 revenue of $102.3 billion, representing a 16% year-over-year increase. More impressively, earnings surged 33% to approximately $35 billion, signaling that growth is translating directly to the bottom line.

A Selective Reduction Amid Broader Holdings

Interestingly, billionaire investor Bill Ackman made a notable move that seems to contradict Wall Street’s enthusiasm. Through his hedge fund Pershing Square Capital Management – which maintains a highly concentrated portfolio of just 11 stocks – Ackman reduced his Alphabet Class A position by roughly 9.7% in Q3 2025. The transaction involved selling over 519,000 shares.

Yet this move warrants context. Pershing Square still maintains approximately 11 million combined Class A and Class B shares worth around $3.3 billion. The reduction appears more like profit-taking from positions that have appreciated significantly since Ackman initiated his Alphabet stake in early 2023, rather than a fundamental loss of conviction.

Notably, Ackman made no new stock purchases in Q3 and added nothing to existing holdings across his portfolio. His activity was limited to trimming four positions, suggesting a cautious stance rather than active repositioning.

The AI Catalyst Remains Intact

Several developments suggest the Street’s optimism is well-founded. Google Search continues firing on all cylinders, enhanced by generative AI features like AI Overviews that improve user experience and search relevance. Google’s Gemini LLM has crossed 650 million monthly active users, establishing a significant foothold in the competitive AI landscape.

Google Cloud represents another growth engine accelerating due to AI tailwinds. The recent launch of Google Gemini 3.0 should provide additional momentum, while adoption of agentic AI – autonomous agents that perform complex tasks – could attract new enterprise customers seeking to automate operations.

Beyond these core businesses, Waymo offers intriguing optionality. The autonomous ride-hailing service now operates in five U.S. cities with plans to expand to 11 additional cities plus London. Meanwhile, Google Quantum AI continues advancing quantum computing capabilities, with potential applications emerging within the decade.

Reconciling the Divergence

Why would a sophisticated investor like Ackman trim exposure while analysts remain decidedly bullish? The most plausible explanation is straightforward: profit-taking. When a position appreciates substantially over two years, reducing size represents prudent portfolio management rather than a bearish signal. Ackman’s continued ownership of $3.3 billion in Alphabet shares demonstrates his underlying confidence in the company.

Long-term investors appear well-positioned to benefit from Alphabet’s AI-driven growth trajectory. The combination of search dominance, cloud acceleration, and emerging opportunities in autonomous systems and quantum computing suggests multiple years of significant value creation ahead.