David Tepper's Q2 Moves on Alphabet and Meta: A Contrarian Viewpoint

David Tepper, a billionaire hedge fund manager, has reduced his stakes in Alphabet and Meta by 25% and 27% respectively in Q2. This move contrasts with Wall Street's positive views on the stocks, with 54 of 66 analysts rating Alphabet as a "buy" or "strong buy" and 58 of 67 analysts rating Meta as a "buy" or "strong buy". Tepper's sales could indicate that he knows something that Wall Street doesn't, but the exact reason is unclear.

Billionaire hedge fund manager David Tepper, known for his astute investment decisions, has significantly reduced his stakes in Alphabet (NASDAQ: GOOGL) and Meta Platforms (NASDAQ: META) during the second quarter of 2025. This move stands in stark contrast to the overwhelmingly positive views held by Wall Street analysts.

Tepper's hedge fund, Appaloosa Management, sold 510,000 shares of Alphabet, reducing its stake by around 25%. Similarly, the fund sold 150,000 shares of Meta, slashing its stake by more than 27%. These moves come despite the fact that 54 out of 66 analysts surveyed by LSEG rated Alphabet as a "buy" or "strong buy," and 58 out of 67 analysts rated Meta as a "buy" or "strong buy" [1].

The exact reasons behind Tepper's sales are unclear, but they could indicate a potential insight into the future prospects of these companies. However, Tepper's actions do not align with the consensus view on Wall Street. Analysts project that Alphabet's stock could rise slightly over the next year, while Meta's stock could jump by approximately 15% [1].

Tepper's moves come amid a broader trend of increased investment in artificial intelligence (AI) infrastructure by big tech companies. Alphabet, for instance, has been investing heavily in AI, including a recent $10 billion deal with Meta for cloud services through Google Cloud Platform (GCP) [1]. This deal underscores Alphabet's strategic importance in the AI cloud ecosystem and validates years of heavy investment in AI infrastructure.

While Tepper's sales of Alphabet and Meta shares may suggest a potential concern, it is essential to consider the broader context. Alphabet's cloud services, particularly Google Cloud, are one of the fastest-growing in the industry. Google Search and YouTube continue to perform strongly, and generative AI is proving beneficial rather than detrimental to the company. Additionally, Alphabet's Waymo unit stands to benefit significantly from the growing robotaxi market [1].

Similarly, Meta's family of social media apps, including Facebook, Messenger, Instagram, and WhatsApp, continues to attract a vast user base. The company's recent investments in AI infrastructure, such as its partnership with Google Cloud and its $14.3 billion investment in Scale AI, highlight its ambitions to lead the next frontier in AI [1].

In conclusion, while David Tepper's reduction in stakes in Alphabet and Meta may signal a potential concern, the overwhelmingly positive views of Wall Street analysts suggest that these companies remain strong investment opportunities. Investors should closely monitor the developments and consider the broader context of these companies' strategic positions and growth prospects.

References:
[1] https://www.nasdaq.com/articles/alphabet-lands-10-billion-meta-cloud-deal-win-googles-artificial-intelligence-ambitions
[2] https://www.nasdaq.com/articles/does-billionaire-david-tepper-know-something-about-google-parent-alphabet-and-meta-wall