Bill Ackman’s Pershing Square Discloses New Microsoft Stake
Billionaire investor Bill Ackman revealed that his hedge fund, Pershing Square Capital Management, has established a significant new position in Microsoft. Ackman cited the company’s compelling valuation following a recent stock decline, driven by market concerns over AI spending and cloud growth rates. He emphasized Microsoft’s dominant enterprise software ecosystem, particularly Azure and Microsoft 365, as key long-term value drivers. The disclosure triggered a notable rise in Microsoft shares, signaling strong institutional confidence in the tech giant’s ability to navigate current market skepticism and capitalize on artificial intelligence opportunities.
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Gates Foundation Exits Microsoft as Bill Ackman Buys In Amid AI Concerns
The Bill & Melinda Gates Foundation Trust has completely divested its remaining 7.7 million shares of Microsoft, marking the end of a decades-long position in the company co-founded by Bill Gates. This $3.2 billion exit aligns with the foundation's plan to wind down operations by 2045 and deploy $200 billion in charitable giving. Conversely, billionaire investor Bill Ackman’s Pershing Square Capital Management established a new $2.09 billion position in Microsoft during the first quarter of 2026. Ackman funded this purchase by selling Google shares, citing better value in Microsoft despite recent market skepticism. Wall Street has been wary due to slowing adoption of Microsoft’s AI tool, Copilot, and a recent reorganization of its AI division following missed expectations. While Gates’ sale is driven by structural philanthropic needs rather than negative sentiment, Ackman’s contrarian bet suggests confidence in Microsoft’s long-term potential despite short-term headwinds in its artificial intelligence segment.
Yahoo FinanceBill Ackman Discloses $2.09 Billion Stake in Microsoft
Hedge fund manager Bill Ackman’s Pershing Square Capital Management has disclosed a new stake in Microsoft worth approximately $2.09 billion as of the end of the first quarter of 2026. The position, comprising about 5.65 million shares, grew to roughly $2.3 billion by mid-May. Ackman began acquiring shares in February following a post-earnings dip, citing a compelling valuation of 21 times forward earnings, which he argued was below Microsoft's historical average and aligned with broader market multiples. He contended that the market mispriced the stock by overemphasizing near-term AI-related capital expenditures. Ackman’s investment thesis centers on two key drivers: Azure’s cloud computing growth fueled by AI integration, and the deep corporate entrenchment of Microsoft 365, particularly its AI assistant Copilot. He views heavy spending on AI infrastructure not as undisciplined costs, but as necessary investments for future revenue expansion. This disclosure highlights continued institutional confidence in Microsoft’s long-term trajectory despite short-term spending concerns.
Yahoo FinanceGates Foundation Sells $3.2B Microsoft Stake as Ackman Buys In
Microsoft shares experienced a slight decline following the revelation that the Bill & Melinda Gates Foundation Trust has sold its entire remaining stake in the company, valued at approximately $3.2 billion. This divestment concludes a nearly three-year period of holding the position, which was originally formed through direct donations from Bill Gates. The sale is described as a liquidity-driven maneuver to support the foundation's increased annual grantmaking targets and its strategic plan to fully wind down its endowment by 2045, rather than a negative assessment of Microsoft's future prospects. Concurrently, prominent investor Bill Ackman, through Pershing Square Capital Management, disclosed a new significant position in Microsoft, acquiring 5.65 million shares worth nearly $2.3 billion. Ackman characterized this purchase as a valuation opportunity, citing Microsoft's artificial intelligence franchise and an attractive forward earnings multiple. The contrasting moves highlight different strategic priorities: the foundation's need for cash to fund philanthropy and an activist investor's confidence in the tech giant's long-term growth potential amidst market fluctuations.
Yahoo FinanceBill Ackman Announces Microsoft Stake Amid 26% Price Drop
Hedge fund manager Bill Ackman announced that his firm, Pershing Square, has established a significant position in Microsoft Corporation. Ackman described the investment as a rare opportunity to acquire a dominant technology franchise at a compelling valuation, noting that Microsoft's stock has declined over 26% from its July 2025 peak. This drop was driven by market fears that artificial intelligence investments might cannibalize existing software revenues without delivering expected returns. Ackman entered the position at approximately 21 times forward earnings, aligning with broader market multiples. He highlighted the deep enterprise integration of Microsoft 365, the genuine growth of Azure, and the strategic importance of the Copilot AI agent as key bullish factors. Ackman compared this contrarian move to his successful past investments in Alphabet, Amazon, and Meta during periods of high skepticism. The announcement was made via social media ahead of the mandatory 13F filing, reflecting Ackman's modern approach to communicating investment theses. While acknowledging recent misses in AI monetization expectations, Ackman expressed confidence in CEO Satya Nadella's ability to navigate these challenges.
Yahoo FinanceBill Ackman Invests in Microsoft, Aligning with Jim Cramer's Bullish Outlook
Billionaire hedge fund manager Bill Ackman’s firm, Pershing Square, has disclosed a significant stake in Microsoft, causing shares to rise approximately 4%. This move aligns with CNBC’s Jim Cramer, who argues that Microsoft possesses the financial flexibility and strong balance sheet necessary to remain competitive in the evolving tech landscape. Ackman viewed the recent 12% year-to-date decline in Microsoft’s stock as a rare buying opportunity at a reasonable valuation. He expressed confidence in CEO Satya Nadella’s direct involvement in R&D, particularly regarding the Copilot AI agent embedded in Microsoft 365, predicting improved product velocity and customer adoption. Despite broader investor concerns about AI disruption impacting legacy software models, both Ackman and Cramer believe Microsoft’s long-term potential is underestimated. Cramer emphasized that Microsoft’s value is driven more by cloud growth than traditional software, distinguishing it from other enterprise software stocks like Workday or ServiceNow. The disclosure comes amid a period where many analysts maintain buy ratings, although Cramer’s own club holds a conservative 'hold' rating. Ackman began building the position in February following a post-earnings sell-off, signaling strong institutional confidence in Microsoft’s ability to navigate AI-driven market shifts.
US Top News and AnalysisMicrosoft Stock Rises as Bill Ackman's Pershing Square Buys In
Microsoft Corporation shares surged approximately 3% on Friday, May 15, 2026, defying a broader downturn in the technology sector where the S&P 500 and Nasdaq Composite fell significantly. The rally was primarily driven by the revelation that billionaire investor Bill Ackman’s hedge fund, Pershing Square Capital Management, had established a new position in Microsoft while simultaneously exiting its holdings in Alphabet Inc. Ackman identified Microsoft’s valuation as highly compelling following recent market sell-offs. He highlighted the company’s robust standing in cloud-infrastructure services and office productivity software as key factors supporting the investment decision. Although Microsoft has faced pressure in 2026 due to concerns about artificial intelligence competition and its Copilot product's performance, Ackman’s move serves as a significant vote of confidence in the tech giant’s long-term prospects. Despite the daily gain, Microsoft’s stock remains down 13% for the year and 22% from its all-time high. The article contrasts this positive momentum with ongoing investor debates regarding AI disruption risks versus Microsoft's entrenched market dominance.
Yahoo FinanceBill Ackman Builds Microsoft Stake Amid AI Skepticism and Stock Dip
Billionaire investor Bill Ackman, through his hedge fund Pershing Square Capital Management, has established a significant new position in Microsoft, designating it as a core holding. Ackman began accumulating shares in February 2026, capitalizing on a roughly 10% drop in Microsoft's stock following disappointing Q2 earnings that highlighted slower-than-expected cloud growth and surging capital expenditures. In a public disclosure on X, Ackman argued that the market undervalues Microsoft, citing an attractive entry valuation of 21 times forward earnings. He contends that investors are overly concerned about the company's $190 billion capital expenditure budget for 2026, viewing it instead as a strategic growth investment rather than a margin threat. Ackman also highlighted the stickiness of Microsoft's 365 productivity suite and the substantial value of its 27% stake in OpenAI, which he estimates at $200 billion. This move aligns with Ackman's historical strategy of investing in major technology firms like Alphabet, Amazon, and Meta during periods of market skepticism surrounding artificial intelligence developments and related spending.
Fortune | FORTUNEBill Ackman’s Pershing Square Discloses Microsoft Stake, Cites Deeply Embedded Software Value
Billionaire investor Bill Ackman revealed that his firm, Pershing Square Capital, has acquired a stake in Microsoft, describing the tech giant as a core holding with compelling long-term value. Despite Microsoft's stock declining nearly 12% since the start of the year due to concerns over slowing Azure growth and heavy AI spending, Ackman expressed confidence in the company's future. In a detailed post on X, he highlighted the resilience of Microsoft's M365 productivity suite and Azure cloud business, arguing that investors underestimate their deeply embedded role in enterprises. Ackman also praised Microsoft's strategic restructuring of its partnership with OpenAI, viewing the capped payment agreement not as a concession but as a deliberate pivot toward a multi-model architecture that better serves enterprise customers seeking optionality. He believes increased AI spending will drive future revenue generation. Following the disclosure, Microsoft shares rose nearly 2% in early trading. While the exact size of Pershing Square's stake was not disclosed, the move aligns with the firm's existing investments in other major technology companies like Meta, Amazon, and Google.
New York PostAckman Reveals New Microsoft Position, Calls Stock ‘Highly Compelling’
Billionaire investor Bill Ackman announced that his hedge fund, Pershing Square Capital Management, has established a new position in Microsoft Corp. The disclosure was made via social media ahead of the firm's upcoming 13F regulatory filing. Ackman described Microsoft as a dominant long-term compounding franchise available at a highly compelling valuation, noting that such opportunities arise when short-term market volatility intersects with growing index ownership. He emphasized Microsoft's core strengths in enterprise software and cloud computing, specifically highlighting Microsoft 365 and Azure. These two divisions account for approximately 70% of the company's profits. Ackman pointed to Microsoft 365's dominance in productivity with over 450 million daily users and Azure's status as the second-largest hyperscaler benefiting from the multi-decade migration of IT workloads to the cloud. He further noted that Azure is gaining momentum from surging demand for AI inference workloads. Additionally, Ackman cited Microsoft's diversified ecosystem, including LinkedIn, Xbox, and its advertising business, as key components of the investment thesis. This move aligns with Pershing Square's history of acquiring major technology stocks like Alphabet, Amazon, and Meta during periods of market uncertainty.
Yahoo FinanceBill Ackman's Pershing Square Takes New Stake in Microsoft
Billionaire investor Bill Ackman announced that his hedge fund, Pershing Square, has established a new position in Microsoft (MSFT), with the holding to be disclosed in an upcoming 13F filing. Ackman described the current valuation as highly compelling, noting that shares were acquired at approximately 21 times forward earnings following a price decline after Microsoft's fiscal Q2 2026 results. He argued that the market undervalues Microsoft's 27% stake in OpenAI, estimated at $200 billion, and underestimates the resilience of its M365 franchise against AI competitors like Anthropic. Ackman emphasized that M365's deep integration into enterprise workflows and security infrastructure makes it difficult to disintermediate. The announcement contributed to a 3% rise in Microsoft's stock price, which had previously underperformed the S&P 500 this year due to concerns over AI investment costs and competitive pressures in cloud computing and productivity software.
Yahoo FinanceBill Ackman's Pershing Square Takes Stake in Microsoft
Hedge fund manager Bill Ackman has announced that his firm, Pershing Square Capital Management, has acquired a significant stake in Microsoft Corporation. The disclosure was made via social media, with the formal filing expected in a 13F report to regulators. Ackman cited Microsoft's current valuation as compelling, noting that the stock had underperformed the broader tech sector earlier in the year. Specifically, Microsoft shares had declined by 15% year-to-date, contrasting with a nearly 15% rise in the Nasdaq index. Ackman revealed that Pershing Square began accumulating shares in February 2026, following a price drop after Microsoft's fiscal second-quarter earnings report. The fund established its position at approximately 21 times forward earnings, a multiple Ackman described as being in line with the broader market but significantly below Microsoft's historical trading average. This strategic move highlights Ackman's confidence in the tech giant's long-term value despite recent market volatility. The news caused Microsoft shares to edge higher in premarket trading, signaling positive investor reception to the endorsement from one of Wall Street's prominent activist investors.
Yahoo FinanceAckman's Pershing Square Takes Microsoft Stake, Exits Alphabet
Billionaire investor Bill Ackman’s firm, Pershing Square, has established a new position in Microsoft while fully liquidating its holdings in Alphabet, the parent company of Google. Ackman announced the strategic shift on social media, noting that regulatory filings would confirm the transactions. He justified the move by citing Microsoft's attractive valuation following a recent stock decline driven by concerns over cloud revenue growth and AI partnership changes. Ackman views Microsoft's Azure cloud and M365 suite, particularly its Copilot AI assistant, as central to enterprise AI adoption. He dismissed market worries about Microsoft's restructuring of its OpenAI partnership, interpreting it as a pivot toward a multi-model architecture beneficial for customers. Conversely, Ackman exited Alphabet after holding the stock for three years, having purchased it at an average of $94 per share. The decision to sell Alphabet helped fund the Microsoft acquisition. Despite broader market anxieties regarding Microsoft's heavy spending plans and competitive pressures from Amazon and Google, Ackman remains bullish on its long-term growth potential. Following the news, Microsoft shares rose over 3% in early trading.
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