Billionaire investor Stanley Druckenmiller has sold $153 million worth of Alphabet Class A shares, according to a recent 13F filing. The sale represents disciplined profit-taking after a more than 50% gain, as the stock’s valuation no longer aligned with his investment thesis. Despite this exit, Druckenmiller had previously expressed skepticism about the AI sector’s hype, drawing parallels to the early internet bubble.
Stanley Druckenmiller has sold 385,000 Class A Alphabet shares worth $153 million. The former hedge fund manager had increased this position by 277% in the prior quarter before taking profits.
He held the stock for over two quarters, realizing a gain of more than 50%. The valuation of Google stock, trading at roughly 28x forward earnings compared to 17x a year ago, prompted the disciplined exit.
Druckenmiller has previously questioned the artificial intelligence sector. “AI might be a little overhyped now,” and “AI could rhyme with the internet,” he stated.
His comments extend to Alphabet, which is heavily invested in AI development. The company has committed nearly $185 billion in capital expenditure to the technology, causing concern on Wall Street.
Other tech giants like Amazon, Apple, Microsoft, and Tesla are also making massive AI investments. The fierce competition centers on next-generation technology for user queries.
Wall Street remains confident in Alphabet‘s ability to deliver despite the spending. Investment bank Piper Sandler projects GOOGL stock could reach a high of $425.
