Billionaire Bill Ackman Says There’s a Huge Disconnect in Wall Street’s Expectations for Amazon, Microsoft, Meta, and Alphabet

详细摘要

Wall Street expects the hyperscalers to keep up their heavy capital expenditures, but it's worried that the revenue growth they are expecting to result from that spending might not show up.

The stock market hasn't been as keen on the hyperscalers in 2026 as it was in years past. Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) have delivered better returns than the S&P 500 (SNPINDEX:^GSPC) year to date thanks to strong relative performances over the past month or so. Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META) haven't fared nearly as well — they're down for the year.

But that could be an opportunity for long-term retail investors. Billionaire hedge fund manager Bill Ackman believes the market has soured on these four stocks due to a "notable disconnect" between market expectations and the businesses' fundamentals. That's reflected in growing skepticism among analysts that the massive amounts these companies are spending on new data centers will yield meaningful returns on investment.

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But the actual financial results and management's commentary should give investors confidence that the future may be brighter for these hyperscalers than the average analyst expects.

In his third-quarter letter to Pershing Square shareholders, Ackman expressed his belief that most analysts aren't properly accounting for the potential revenue growth stemming from the stepped-up capital spending among Amazon, Microsoft, Meta, and Alphabet. He wrote:

That is to say, Wall Street is acting like the increase in capital expenditures won't result in a commensurate increase in revenue over time. That's despite the fact that their prior spending has already been doing so for all four hyperscalers.

Meta, notably, saw accelerating growth in its advertising business as it accelerated its capital expenditures.

Alphabet has seen Google Cloud revenue accelerate significantly, more than doubling year over year in its…

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