Pershing Square Sells 6.1M Alphabet Shares, Highlights 19% Search, 63% Cloud Growth
Pershing Square liquidated 6.1 million Class C and 678,000 Class A Alphabet shares in Q1 2026, using $1.64 billion proceeds to buy 5.65 million Microsoft shares at 21x forward earnings. Alphabet’s Search revenue rose 19% and Cloud grew 63%, with a 27x forward P/E and PEG under 0.7.
1. Pershing Square Exits Alphabet Position
In Q1 2026, Pershing Square Capital Management reduced its three-year Alphabet position from over 6.1 million Class C and 678,000 Class A shares to under 350,000 total shares, completing a full exit by early Q2. This marked a decisive shift in the fund’s allocation strategy.
2. Proceeds Deployed into Microsoft
The firm redirected approximately $1.64 billion from the Alphabet sale to acquire 5.65 million Microsoft shares at about 21 times forward earnings. The reallocation underscored a tactical capital deployment rather than a negative view on Alphabet’s long-term prospects.
3. Alphabet’s Growth Metrics and Valuation
Alphabet reported 19% year-over-year growth in Google Search revenue and 63% growth in Google Cloud during the latest quarter. The shares trade at a 27x forward P/E with a PEG ratio below 0.7, reflecting confidence in its full-stack AI and cloud service offerings.
