Pershing Square Capital Management first initiated its investment in Alphabet in Q1 2023, acquiring roughly 8.07 million Class C shares and 2.19 million Class A shares when the stock was perceived as undervalued. Over the subsequent quarters, the fund adjusted its holdings but maintained a core position, reflecting billionaire Bill Ackman’s conviction in Alphabet’s long-term growth potential driven by its dominance in search, cloud infrastructure, and emerging AI initiatives.

In the third quarter of 2025, Pershing Square reduced its Class A shareholding by approximately 10%, selling about 0.52 million shares while holding onto 4.84 million Class A and 6.32 million Class C shares at quarter-end. This strategic trimming represented the fund’s only material reduction during the period, suggesting a selective rebalancing rather than a shift away from Alphabet.

Between the end of Q3 2025 and mid-January 2026, Ackman’s fund realized an aggregate unrealized gain of roughly $2.04 billion across its combined Class A and Class C stakes. The Class C position appreciated by about $551.7 million, while the Class A holding added $1.48 billion in value, driven by all-time-high trading levels in December and January.

With Alphabet shares outperforming in early 2026, investors will closely watch the upcoming Pershing Square 13F filing to gauge any further adjustments to the Alphabet stake. A decision to increase the position could signal renewed bullishness on Alphabet’s AI roadmap and advertising resilience, while additional trims might reflect profit-taking after a substantial rally.