Pershing Square Capital Management holds 10.52% of its portfolio in Alphabet, underscoring the company’s central role in hedge-fund titan Bill Ackman’s long-term strategy. Alphabet’s search engine commands roughly 90% of global market share, driving its digital-advertising revenue, which grew by 12% year-over-year in the latest quarter. Meanwhile, its Google Cloud division reported a $155 billion sales backlog as of Q3, up 46% quarter-on-quarter, reflecting accelerating demand for enterprise infrastructure and AI services. With a current market capitalization exceeding $4 trillion and gross margins near 59%, Alphabet combines defensive cash flows from search and advertising with high-growth potential in cloud computing and AI research.

DeepMind, acquired by Alphabet in 2014, now operates as the ‘engine room’ for the company’s AI innovation, with CEO Demis Hassabis engaging in daily strategic calls with Google CEO Sundar Pichai. This direct line of coordination has enabled Alphabet to reduce model-to-product deployment times, exemplified by the rollout of Gemini 3 in November 2025 after a rapid development cycle. Investors should note that this streamlined infrastructure contributed to a 34% increase in cloud-segment year-over-year revenue and supports Alphabet’s ambition to achieve artificial general intelligence safely and at scale.