Ackman reduces position in Alphabet but is collectively opposed by Wall Street? The AI giant's Q3 earnings report explains everything.

Core Data Overview

• Ackman Q3 Actions: Reduced holdings of Alphabet Class A shares by 519,000 shares, a decrease of 9.7%.
• Wall Street Attitude: 66 analysts zero bearish, 57 rated “Buy/Strong Buy”
• Alphabet Q3 Results: Revenue of $102.3 billion (YoY +16%), Net profit of $35 billion (YoY +33%)
• Gemini users: Monthly active users exceed 650 million

Why are the big shots selling while Wall Street is buying?

Ackman's Logic: He did not reduce his holdings in Amazon or Alphabet Class C shares, only in Class A shares. The most likely reason is profit-taking — Alphabet Class A shares have surged significantly since the start of Q1 2023, and he still holds 11 million shares worth $3.3 billion. He may be looking to balance his portfolio risk.

Why Wall Street is Optimistic:

• Google Search business is “fully operational”, AI Overviews feature drives search growth
• Google Cloud revenue accelerates, with AI tools directly driving customer migration
• Waymo's driverless taxis are already operating in 5 cities in the United States, with plans to expand to 11+ cities.
• The quantum computing department has achieved significant breakthroughs, with the potential to become a new growth engine at the level of a decade.

How should long-term investors view it?

From the data, Ackman's reduction in positions is not a bearish signal, but rather a portfolio adjustment. Alphabet's AI moat is deepening:

• After the launch of Gemini 3.0, Google Cloud is expected to attract more AI application developers.
• With the popularization trend of Agent AI, Google Search may evolve into a personal shopping assistant.
• Waymo's commercialization path is clear, and it may become a profit center in the future.

Where is the contradiction: Both are AI beneficiary stocks, so why are the large fund managers selling? A possible explanation is — short-term PE is too high vs long-term fundamentals still strong. Wall Street analysts are generally fundamentalists, while Ackman may be balancing risk.

Key points to pay attention to in this operation: If Ackman continues to reduce his holdings, it may indicate that AI valuations are entering an overbought stage; if he stops reducing his holdings, it is simply a profit-taking.