Pershing Capital's Bill Ackman Whiffed On Netflix, Bets Big On Google's AI Potential

Pershing Capital founder Bill Ackman took losses on Netflix Inc (NASDAQ: NFLX) and confirmed investments in Alphabet Inc (NASDAQ: GOOG) during CNBC’s Delivering Alpha event Thursday.

The hedge fund manager said that he believes Google will benefit from the rise of artificial intelligence (AI) technology and AI-powered tools, making it a long-term buy.

Ackman, who calls himself a "Warren Buffett devotee," said that Google’s stock was relatively cheap and that the tech company is now his fund’s second-largest holding.

According to Pershing Capital’s most recent 13F filings, Chipotle Mexican Grill (NYSE: CMG) and Restaurant Brands International Inc (NYSE: QSR) as the company’s two largest holdings, indicating Ackman and Pershing likely bought their Google shares in the last quarter. 

Price Action: Shares of Google rose by about .7% after hours following Ackman’s comments on the company. Google’s stock is up more than 50% from its lows of around $88 a share in January. 

The Netflix Trade: Ackman had a rare miss on Netflix last year, buying the stock and selling it just a few months later for a $400 million loss. The stock ultimately rebounded after he exited, and he would have been in the green on the trade had he just held a few months longer. Ackman said that he still believes in the Netflix management team during his Delivering Alpha segment, but would rather be invested in Google.

Photo by Center for Jewish History, NYC via Wikimedia Commons