In Pershing Square Capital Management’s latest portfolio disclosure, Alphabet represents 10.52% of total assets, making it the second‐largest holding behind only Uber. This significant allocation underscores Ackman’s conviction in Alphabet’s durable competitive advantages—its 90% global market share in online search and leadership in digital advertising. During Q3 2025, Alphabet’s cloud division reported sales growth of 46% quarter-over-quarter, driving its cloud backlog to $155 billion. With advertising revenue still growing at double-digit rates and cloud emerging as a major profit center, investors can interpret Ackman’s large position as a vote of confidence in the company’s ability to sustain high returns on capital over the next decade.

In late 2024, Alphabet unveiled its in-house quantum processor, Willow, which demonstrated exponential error reduction as qubit counts scale. In fall 2025, the company ran a verifiable quantum algorithm on Willow that outperformed the fastest classical supercomputers on a specialized task—marking a milestone in quantum supremacy. This breakthrough suggests Alphabet’s quantum efforts are moving from theoretical research to practical applications. Management has signaled continued capital investment in quantum research centers worldwide, positioning the company to capture early share in a market that analysts project could exceed $10 billion by 2030. Such developments may drive meaningful upside for long-term shareholders as quantum computing transitions toward commercialization.