Most important take away

Billionaire hedge fund manager Bill Ackman believes many of the highest quality businesses in the world are trading at extremely cheap prices right now. The panel highlighted specific stocks they view as irrationally undervalued, including Lululemon at roughly 11x trailing earnings, Microsoft and Alphabet both in the low 20s times trailing earnings, and Howard Hughes Holdings (HHH) trading in the low $60s after Ackman himself bought shares at $100 last year.

Summary

Actionable insights and investment ideas discussed:

• Lululemon (LULU): Trading at about 11x trailing earnings, a valuation typically reserved for slow-growth retailers. The panel sees it as a dominant consumer brand with industry-leading margins and a large untapped international runway, especially in China. Concerns about North American growth maturation and product execution misses have pressured the stock, potentially creating an opportunity.

• Microsoft (MSFT): Trading in the low 20s times trailing earnings. Described as having positioned itself as the “essential operating system for AI,” making it cheap relative to its earnings potential in the AI era.

• Alphabet (GOOGL): Also trading in the low 20s times trailing earnings. Highlighted for its growing TPU business and AI integration across its advertising machine. Viewed as undervalued relative to growth ability.

• Howard Hughes Holdings (HHH): Ackman is executive chair. The stock trades in the low $60s despite Ackman buying shares at $100 last year. A real estate developer of large-scale communities (Summerlin in Las Vegas, The Woodlands in Houston). The panel noted that operationally the business is performing as expected despite the stock decline.

• Fannie Mae (FNMA) and Freddie Mac (FMCC): Ackman called these potential 10x opportunities. His cost basis on Fannie is about $2.29 per share (currently around $6). He estimates it could be worth at least $34 if government conservatorship ends. The Trump administration has been discussing reprivatization, including a potential IPO raising up to $30 billion. Key risk: removing conservatorship could destabilize the mortgage market while interest rates remain high, and the companies may not yet have adequate capital buffers.

• SpaceX IPO: Expected to be the largest IPO in history, aiming to raise $75 billion at a $1.75 trillion valuation. Notably, 30% of shares would be allocated to retail investors (vs. the typical 5-10%). The valuation is driven by Starlink (already profitable with millions of subscribers), the merged xAI/X platform, and future concepts like orbital AI data centers. Caution: much of the valuation rests on unproven future technology, and trillion-dollar valuations leave little room for error.

• AI and demand aggregators (Expedia, Instacart/Maple Bear, Uber): A Jefferies analyst flagged Expedia and Instacart as AI beneficiaries, counter to the prevailing narrative that AI threatens third-party platforms. The bull case: these platforms possess decades of high-intent user data that general AI chatbots lack, and AI can transform them from reactive search tools into proactive concierge experiences, boosting conversion and retention. The bear case: agentic AI could eventually bypass booking sites entirely. Uber was singled out as particularly well-positioned because it owns the interface, has a massive driver network, and already uses AI to process billions of real-time data points.

Key takeaway for investors: The current market environment has created opportunities in high-quality businesses across sectors. Do your own research and consider whether the market’s pessimism on specific names is warranted or represents an entry point.

Chapter Summaries

AI and Demand Aggregators (Expedia, Instacart, Uber) A Jefferies analyst made a counter-narrative call that Expedia and Instacart are AI beneficiaries, not victims. The panel debated both sides: the bull case centers on proprietary data making AI a tool that enhances these platforms, while the bear case warns that agentic AI could bypass intermediaries entirely. Uber was highlighted as the strongest positioned aggregator.

SpaceX IPO SpaceX is preparing what would be the largest IPO in history at a $1.75 trillion valuation, raising $75 billion. The company plans an unprecedented 30% retail allocation. The valuation reflects Starlink’s profitable subscriber base, the merged xAI business, and ambitious future plans like orbital data centers. The panel cautioned that much of the valuation is based on unproven technology.

Bill Ackman’s “Stupidly Cheap” Stocks Ackman posted on social media that many high-quality businesses are at extremely cheap prices. He specifically highlighted Fannie Mae and Freddie Mac as potential 10x plays tied to the possible end of government conservatorship. The panel then shared their own picks: Howard Hughes Holdings, Lululemon, Microsoft, and Alphabet as quality businesses trading at attractive valuations.