Latest news with #BillAckman
Yahoo
8 hours ago
- Business
- Yahoo
Billionaire Bill Ackman Has 14% of His $12 Billion Hedge Fund in 1 Top AI Stock
Alphabet's recent announcements demonstrate how much AI is ingrained in its strategic vision. Its broad reach, coupled with nearly $100 billion in cash and equivalents, put it in a strong position. Despite all these positive attributes, shares of the tech giant trade for less than 20 times earnings. 10 stocks we like better than Alphabet › The everyday investor can find solid ideas by following the experts closely. Bill Ackman, the billionaire founder of the hedge fund Pershing Square Capital Management, is one such professional. He has a strategy similar to Warren Buffett's: identify high-quality businesses and make concentrated bets on them. As of March 31, Pershing Square had 14% of its $12 billion portfolio in this top artificial intelligence (AI) stock, making it the third largest holding. Shares have soared 143% in the past five years. Continue reading to learn about this dominant business. The world might have been discovering AI in the past couple of years, but Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) has been working on AI for more than a decade. These days, the revolutionary technology permeates the company's products and services. It helps to provide traffic info in its Maps, allows users to find pictures in Photos by searching on what's in them, and filters spam in Gmail. Alphabet held its annual Google I/O developer conference recently, and it provided some exciting news about numerous features and tools on the AI front. Of note is Gemini Agent Mode, which allows users to delegate complex tasks to AI that might involve many different steps, like searching the web or conducting deep research. The company also announced it has partnered with Warby Parker to develop AI smart glasses. This might come as a surprise, given that Google Glass was a failed product launch a decade ago. It's clear that Alphabet aims to position itself as a dominant force in what appears to be the next stage of the internet's evolution. AI isn't just a passing fad for the company -- it's part of the DNA at Alphabet. And for the critics worried about how AI will affect Alphabet's ability to generate revenue, ad sales in the first quarter rose 8% year over year. It was also announced that ads will be displayed within AI Overviews and in AI Mode -- an example of Alphabet adapting to the times. Ackman certainly appreciates Alphabet's position in the AI race. That competitive standing is bolstered by the presence of an economic moat that stems from a powerful network effect, meaning that a product or service gets better as more people use it. Google Search is one example. More search queries help refine the algorithm, providing more relevant info that leads to greater use. And for YouTube, more viewership incentivizes creators to post more videos. With more content on the site, there is a more diverse range of videos to watch, which brings on more viewers. Alphabet's financial position makes it one of the world's most lucrative enterprises. It generated $35 billion in net income and $19 billion in free cash flow just in the first quarter. And as of March 31, the business had $95 billion in cash, cash equivalents, and marketable securities on its balance sheet, giving it deep pockets to keep investing aggressively in AI. Currently, Alphabet shares are down about 9% so far this year, trading 17% below their peak, which was reached in February. This is despite the company reporting strong financial results. It exceeded Wall Street expectations for revenue and earnings per share in the first quarter. The stock trades at an attractive valuation right now. Investors can add Alphabet to their portfolios at a price-to-earnings ratio of 19.2. This isn't far off the cheapest multiple it has sold for in the past decade. In my view, investors should keep things simple. Consider following Ackman and buy Alphabet stock today. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool recommends Warby Parker. The Motley Fool has a disclosure policy. Billionaire Bill Ackman Has 14% of His $12 Billion Hedge Fund in 1 Top AI Stock was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
10 hours ago
- Business
- Yahoo
Hertz Global Holdings, Inc. (HTZ): A Bull Case Theory
We came across a bullish thesis on Hertz Global Holdings, Inc. (HTZ) on Bill Ackman on X (Twitter). In this article, we will summarize the bulls' thesis on HTZ. Hertz Global Holdings, Inc. (HTZ)'s share was trading at $7.05 as of 23rd May. HTZ's trailing and forward P/E were 23.71 and 11.78 respectively according to Yahoo Finance. nito/ Hertz presents a compelling investment opportunity as both an operating company and a highly leveraged portfolio of automobiles. After acquiring a 19.8% stake, investors highlight four key drivers for value creation: an improving car rental industry structure marked by more rational competition, resolution of Hertz's overexposure to Teslas which had previously caused operational and residual value issues, a promising operational turnaround led by CEO Gil West and his experienced management team, and the company's leveraged capital structure. The U.S. car rental market is a tight oligopoly dominated by Enterprise, Avis, and Hertz, with improving pricing discipline and strong profit potential demonstrated by Enterprise's 20%+ margins. Hertz is actively rotating its fleet, shedding higher-cost vehicles to reduce depreciation expenses, increasing unit revenues, and cutting operating costs, all of which should drive meaningful margin expansion over the next several years. Despite current leverage, the company's debt largely matures in 2028 and 2029, and Hertz has ample liquidity and financing capacity to support its fleet refresh and obligations. The firm's 500,000-car fleet valued at roughly $12 billion is well-positioned amid rising used car prices driven by tariffs, potentially boosting asset value by over $1 billion—half the current market cap. Management's near-term targets imply adjusted EBITDA of about $2 billion by 2029, which at a conservative 7.5x multiple suggests a $30 per share valuation. While near-term results face headwinds from tariffs and travel industry softness, the intermediate outlook is for sustainably higher profits. A potential partnership with Uber on autonomous vehicle fleets could further unlock value, leveraging Hertz's scale and infrastructure. Although risks remain, this thesis points to significant upside potential. Hertz Global Holdings, Inc. (HTZ) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held HTZ at the end of the fourth quarter which was 30 in the previous quarter. While we acknowledge the risk and potential of HTZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HTZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Business Insider
15 hours ago
- Business
- Business Insider
New ETF Will Track Bill Ackman's Investments
A new exchange-traded fund (ETF) will track the investments of hedge fund manager Bill Ackman. Confident Investing Starts Here: Ackman runs the Pershing Square (PSH) hedge fund and has a strong and loyal following among individual retail investors. He currently has 1.7 million followers on social media platform X. This year, Ackman is off to a strong start thanks to a winning investment he made in mortgage concern the Federal National Mortgage Association (FNMA), commonly known as Fannie Mae. Now, asset manager Tidal Trust has filed to launch an ETF that will be based on the concentrated portfolio of Ackman. Called the 'Vista Shares Pershing Square Select ETF,' this is the latest investment vehicle from Tidal Trust that tracks the holdings of notable investors such as Stanley Druckenmiller, Michael Burry, and Warren Buffett. Major Holdings Ackman's Pershing Square Holdings stock is up 2% this year versus a total return of 1% for the benchmark S&P 500 index. In recent months, Ackman's fund has gotten a lift from its investments in Fannie Mae and also the Federal Home Loan Mortgage (FMCC). Ackman currently owns 220 million shares of the two mortgage agencies, a stake worth about $2 billion. Also this year, Ackman has gotten approval for Pershing Square to buy $900 million of Howard Hughes Holdings (HHH) stock and turn the real estate company into a diversified holding company, which he has called a 'mini Berkshire Hathaway (BRK.B).' Other major stock holdings of Bill Ackman include Uber Technologies (UBER), Hertz Global (HTZ), Chipotle Mexican Grill (CMG), and Amazon (AMZN). Is PSH Stock a Buy? three-month performance. As one can see in the chart below, PSH stock has declined 6% in London trading over the past three months.
Bloomberg
a day ago
- Business
- Bloomberg
Ackman, Druckenmiller-Tracking ETFs Are Latest Industry Gambit
In a crowded ETF market obsessed with attention-grabbing pitches, one idea keeps coming back: Track the trades of star investors and sell them to the masses. The latest entrant comes from VistaShares, which filed this week for a suite of ETFs designed to replicate the holdings of famed money managers like Bill Ackman, Stanley Druckenmiller and Michael Burry. By combing through regulatory disclosures, the firm aims to build funds that echo the moves of these high-profile investors — a fresh spin on the long-running effort to bottle hedge-fund mystique for retail buyers.
Yahoo
2 days ago
- Business
- Yahoo
Hertz Global Holdings, Inc. (HTZ): A Bull Case Theory
We came across a bullish thesis on Hertz Global Holdings, Inc. (HTZ) on Bill Ackman on X (Twitter). In this article, we will summarize the bulls' thesis on HTZ. Hertz Global Holdings, Inc. (HTZ)'s share was trading at $7.05 as of 23rd May. HTZ's trailing and forward P/E were 23.71 and 11.78 respectively according to Yahoo Finance. nito/ Hertz presents a compelling investment opportunity as both an operating company and a highly leveraged portfolio of automobiles. After acquiring a 19.8% stake, investors highlight four key drivers for value creation: an improving car rental industry structure marked by more rational competition, resolution of Hertz's overexposure to Teslas which had previously caused operational and residual value issues, a promising operational turnaround led by CEO Gil West and his experienced management team, and the company's leveraged capital structure. The U.S. car rental market is a tight oligopoly dominated by Enterprise, Avis, and Hertz, with improving pricing discipline and strong profit potential demonstrated by Enterprise's 20%+ margins. Hertz is actively rotating its fleet, shedding higher-cost vehicles to reduce depreciation expenses, increasing unit revenues, and cutting operating costs, all of which should drive meaningful margin expansion over the next several years. Despite current leverage, the company's debt largely matures in 2028 and 2029, and Hertz has ample liquidity and financing capacity to support its fleet refresh and obligations. The firm's 500,000-car fleet valued at roughly $12 billion is well-positioned amid rising used car prices driven by tariffs, potentially boosting asset value by over $1 billion—half the current market cap. Management's near-term targets imply adjusted EBITDA of about $2 billion by 2029, which at a conservative 7.5x multiple suggests a $30 per share valuation. While near-term results face headwinds from tariffs and travel industry softness, the intermediate outlook is for sustainably higher profits. A potential partnership with Uber on autonomous vehicle fleets could further unlock value, leveraging Hertz's scale and infrastructure. Although risks remain, this thesis points to significant upside potential. Hertz Global Holdings, Inc. (HTZ) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held HTZ at the end of the fourth quarter which was 30 in the previous quarter. While we acknowledge the risk and potential of HTZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HTZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
