Bill Ackman's Pershing Square exited Alphabet and trimmed Amazon, shifting over $4 billion into Visa, Mastercard, S&P Global, and Netflix. The move signals a major pivot away from tech giants fueling AI spending toward payment networks and data firms
Every quarter, major U.S. investment managers are required to disclose their stock holdings in a Form 13F filing, offering a rare look at what the pros actually own. But these filings, which arrive about six weeks after the quarter ends, can be easy to misinterpret. They show only long positions in U.S.-listed stocks as of the quarter's close-leaving out shorts, foreign shares, and any trades made after the reporting period. That means headlines often focus on the most recognizable names, not necessarily the most significant moves.
This quarter, much of the attention landed on Bill Ackman's decision to fully exit his position in Alphabet, Google's parent company. According to reporting by TheStreet, Pershing Square had been gradually reducing its Alphabet stake since late 2025, and by the first quarter of 2026, the holding made up less than 1% of the firm's $13.7 billion portfolio. The second-quarter filing confirmed that Ackman had sold the remainder, a move that amounted to roughly $110 million-small compared to the $4.2 billion he deployed into new investments during the same period.
Portfolio Rotation: Out of Big Tech, Into Payments
While the Alphabet sale grabbed headlines, the real story was Ackman's aggressive pivot into payment networks and data companies. Pershing Square opened new positions in Visa, Mastercard, S&P Global, and re-entered Netflix, according to filings reviewed by Seeking Alpha. The combined value of the Visa, Mastercard, and S&P Global stakes reached $3.27 billion, representing nearly 17% of the portfolio-more than any single existing holding, including Uber.
Meanwhile, Ackman trimmed his Amazon position by about 25%, but Amazon remained Pershing Square's fourth-largest holding at $2.04 billion. This was not a wholesale exit, but rather a rebalancing-selling part of a winner to fund new bets. The firm's moves suggest a deliberate shift away from companies pouring hundreds of billions into AI infrastructure, and toward businesses with more predictable cash flows and lower capital requirements.
Why Ackman Chose Visa, Mastercard, and S&P Global
In his second-quarter letter to shareholders, Ackman described his new targets as "simple, predictable, free cash flow-generative" businesses. Visa closed the quarter at $1.12 billion (5.76% of the portfolio), Mastercard at $1.09 billion (5.61%), and S&P Global at $1.06 billion (5.43%), based on Pershing Square's disclosures. Netflix, which Ackman had previously owned, returned to the portfolio at $934 million.
By contrast, Alphabet, Amazon, and Meta are expected to spend between $505 billion and $535 billion on capital expenditures in 2026, much of it on data centers and AI. Ackman's new holdings-especially Visa and Mastercard-don't have to pick AI winners; they collect fees on transactions regardless of which technology prevails. This approach echoes the strategy of owning the "tollbooth" rather than the fastest-growing vehicle on the road.
What It Means for Investors
For most U.S. investors holding S&P 500 index funds, these shifts may seem academic. But Ackman's moves highlight a growing concentration risk: nearly 85% of the S&P 500's first-half 2026 gains came from just two sectors-semiconductors and technology hardware. More than 90% of the index's companies contributed less than 2% of the return, according to Pershing Square's analysis. That means many index investors are more exposed to the AI spending boom than they may realize.
While Ackman's track record includes both big wins and costly missteps, his latest rotation is a clear signal that he sees more value in payment networks and data providers than in the capital-intensive tech giants dominating headlines. Whether this shift pays off will depend on how these sectors perform as the AI investment cycle matures.
According to S&P Global, the S&P 500 index returned 10.2% in the first half of 2026, with technology and semiconductor stocks accounting for the vast majority of gains. Visa and Mastercard, both components of the index, outperformed the broader market during the same period, while Alphabet's shares lagged amid concerns over rising capital expenditures and intensifying competition in AI.
Major portfolio shifts by high-profile investors often spark debate about market timing and long-term strategy. Ackman's move away from Alphabet and toward payment networks is reminiscent of other recent high-profile bets on non-traditional assets, such as Jeff Bezos's investment in European soccer, which drew attention for its scale and timing (as seen in this analysis of U.S. capital flowing into Liverpool FC). Both cases reflect a willingness among billionaire investors to look beyond the obvious growth stories and seek out businesses with durable, recurring revenue streams.
Payment networks like Visa and Mastercard operate as critical infrastructure for global commerce, charging fees on every transaction processed through their systems. Unlike technology giants that must continually invest in new platforms and data centers to stay ahead, these companies benefit from established networks, regulatory barriers, and brand strength. For investors, understanding the difference between capital-intensive growth and steady, fee-based business models can help clarify the risks and rewards of different sectors-especially as market leadership shifts in response to new technology cycles.
