Billionaire Bill Ackman Says There’s a Huge Disconnect in Wall Street’s Expectations for Amazon, Microsoft, Meta, and Alphabet
Bill Ackman argues that Wall Street analysts are underestimating the revenue growth potential from the massive capital expenditures being made by Amazon, Microsoft, Meta, and Alphabet in AI data centers. He estimates these companies can generate 15-25% returns on invested capital from their data center buildouts, suggesting consensus estimates for minimal revenue growth are too pessimistic. At current valuations of 21-28x forward earnings, all four companies appear undervalued, with Alphabet and Meta being particularly attractive.
