You might not realize it, but one of the most important data releases of the quarter occurred last week — and I’m not talking about the monthly inflation report. Aug. 14 marked the deadline for institutional investors, including well-known billionaire money managers like Third Point’s Dan Loeb, to file Form 13F with regulators.
A 13F provides a snapshot of which stocks Wall Street’s brightest money managers bought and sold in the latest quarter. Loeb was a busy bee in the second quarter, sending artificial intelligence (AI) superstars Nvidia (NVDA -0.99%), Broadcom (AVGO -4.61%), and Meta Platforms (META +0.43%) to the chopping block. However, he continued to pile into a company that’s a virtual monopoly, Alphabet (GOOGL +0.15%)(GOOG +0.12%).
Image source: Getty Images.
Nvidia, Broadcom, and Meta Platforms got the heave-ho by Third Point’s billionaire boss
On the one hand, Nvidia, Broadcom, and Meta are well-positioned to take advantage of the AI revolution. Nvidia accounts for the lion’s share of graphics processing units in AI-accelerated data centers, while Broadcom’s AI networking solutions and specialized AI chips are playing an equally important role. As for Meta, it’s had plenty of early success integrating generative AI into its advertising platform.
However, Third Point’s billionaire boss is often more of a swing trader than a long-term investor. The average top-20 stock in Loeb’s fund has been held for just nine months, as of June 30.
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In other words, profit-taking may largely explain why Loeb sold all 190,000 shares of Nvidia, 50,000 shares of Broadcom, and 90,000 shares of Meta Platforms during the second quarter.
Billionaire Dan Loeb has also dismissed AI bubble concerns, suggesting that perceived aggressive price-to-sales valuations for Broadcom and, to some extent, Nvidia likely aren’t the reason he sent them to the chopping block in the June-ended quarter.
Image source: Getty Images.
Google parent Alphabet is a hot commodity among billionaire investors
At the other end of the spectrum, Third Point’s chief investor added 850,000 shares of Alphabet’s Class A shares (GOOGL), increasing his fund’s stake by 489% from the end of March. Loeb is one of several billionaire money managers who can’t stop buying shares of Alphabet.
There’s little question that investors (including Loeb) appreciate Alphabet’s virtual monopoly on internet search. According to GlobalStats, Google accounted for more than 91% of worldwide internet search traffic in July. Between this sustainable moat and its ownership of YouTube, the second-most-visited social site on the planet, Alphabet commands exceptional ad pricing power.
But it’s Alphabet’s AI ambitions that are primarily attracting billionaire asset managers. Since Alphabet integrated generative AI and large language model solutions into Google Cloud (the world’s No. 3 cloud infrastructure services platform by total spend), sales growth for this high-margin segment has gone through the roof. Google Cloud’s revenue surged by 82% in the second quarter from the prior-year period.
$GOOG Alphabet Q2 FY26:
• Revenue +24% Y/Y to $119.8B ($2.8B beat).
• Operating margin 34% (+2pp Y/Y).
• $98B net gains from equity investments.☁️ Google Cloud:
• Revenue +82% Y/Y to $24.8B
• Operating margin 36% (+15pp Y/Y).▶️ YouTube ads +13% to $11.1B pic.twitter.com/seYlITzfg6
— App Economy Insights (@EconomyApp) July 22, 2026
Alphabet is one of Wall Street’s few cash cows, which can fund aggressive investments in high-growth initiatives from its operating cash flow and cash-rich balance sheet.
While it’s anyone’s guess if Loeb hangs onto Alphabet for more than a couple of quarters, it’s clearly become a favorite of billionaire money managers.
