Billionaire Stanley Druckenmiller has sold 385,000 Class A Alphabet shares worth $153 million, according to the latest 13F filing. The exit has less to do with Alphabet’s performance but is a sustained yet disciplined profit booking from the billionaire. The former hedge fund manager has built this Google stock position up by 277% in the previous quarter.
The billionaire had held the stock for two-plus quarters, seeing a 50%+ uptick. As Google stock surged from the end of March, it is trading at roughly 28x forward earnings, compared to 17x a year ago. Therefore, the valuation no longer fits the billionaire’s thesis, and he decided to sell the holdings at the right time. Unlike retail investors, ‘smart money’ knows when to take an entry position and exit when they meet the criteria.
However, Druckenmiller had previously questioned the AI sector, calling it an overhyped industry that could soon peel out. “AI might be a little overhyped now,” and “AI could rhyme with the internet,” he said. His statements also cover Google, as the company is heavily invested in AI development that could affect its stock prospects.
Also Read: Taylor Morrison Stock New Target After Berkshire Hathaway’s Acquisition
Google Stock Comes Under the Lens of Retail and Institutional Investors
Alphabet has invested nearly $185 billion in AI, and the capital expenditure has got Wall Street worried. Not just the search giant, other tech titans such as Amazon, Apple, Microsoft, and Tesla, among others, are pouring billions into the industry. The competition is fierce, as the next-gen technology is in heavy demand among users for queries. Google stock remains at the center of it all, as Wall Street is confident that the company can deliver.
Several Wall Street firms have provided bullish price predictions for Google stock. The latest comes from the leading investment bank Piper Sandler, which projects GOOGL to reach a high of $425 next. The bank is confident that GOOGL would break through the $400 threshold and climb to the $425 range.
Also Read: Micron Stock Surged Nearly 30%