Billionaire Dan Loeb sold all Alphabet shares to invest in high-flying AI stock.

From Nasdaq: 2025-01-23 05:06:00

Year two of Wall Street’s bull market rally saw significant gains in 2024, with the Dow Jones Industrial Average up 13%, the S&P 500 up 23%, and the Nasdaq Composite up 29%. Factors contributing to the rally included excitement for stock splits, improved corporate earnings, and Donald Trump’s November victory.

Artificial intelligence (AI) has been a key catalyst for market growth, with a projected $15.7 trillion addressable market by 2030. Top money managers like Dan Loeb have been investing in the AI revolution, with Loeb closing out the September quarter with $7.43 billion in assets under management spread across 42 stocks.

Loeb made a surprising move by selling all of Third Point’s shares in Alphabet, one of the cheapest AI leaders, and investing in Tesla, a pricey AI stock. Despite concerns about an AI bubble, Alphabet remains strong with its advertising segments, cloud services, and historically inexpensive valuation.

Investors are urged to consider potential lucrative opportunities in the market, such as the “Double Down” stock recommendations for companies like Nvidia, Apple, and Netflix. These alerts highlight the success of past investments and offer insights into current opportunities in the market.



Read more at Nasdaq: Billionaire Dan Loeb Sold Third Point’s Entire Stake in Alphabet in Favor of One of Wall Street’s Priciest (and High-Flying) Artificial Intelligence (AI) Stocks