Bill Ackman Builds Microsoft Stake
Billionaire hedge fund manager Bill Ackman disclosed Friday that his firm Pershing Square Capital Management built a Microsoft stake during the first quarter, CNBC reported. He framed the move as a high-conviction bet on AI and cloud growth at a discount valuation.
Ackman Sees Microsoft Stake at Market-Rate Price
Pershing Square began buying Microsoft shares in February. The purchases followed a notable decline in the stock after its fiscal second-quarter earnings release. Ackman said the firm acquired its Microsoft stake at roughly 21 times forward earnings. He described that multiple as broadly in line with the broader market and well below Microsoft’s own historical trading range. Ackman did not specify the size of the position but labeled it a “core holding” for the fund.
To help finance the purchase, Pershing Square sold its shares in Alphabet. Ackman was careful to clarify the move was not a negative view on Google’s parent. He said finite capital forced a trade-off between two companies he views favorably long term.
A Sell-Off Driven by AI Skepticism
Microsoft shares have dropped more than 26% from their record high set in July 2025. The decline reflected investor anxiety that AI-era disruption could erode the company’s software advantages. Markets also questioned whether heavy capital spending on AI infrastructure would yield sufficient returns.
Ackman pushed back on that view directly. He argued the market has overestimated risks to Microsoft’s competitive position in AI. He also said concerns about growth durability at the Azure cloud unit are excessive. He pointed to the Microsoft 365 productivity suite as a deeply embedded enterprise platform that rivals would struggle to displace. Security, compliance and identity infrastructure make switching costs particularly high, he argued.
Background: A Pattern of Contrarian Tech Buys
The Microsoft move fits a recognizable Pershing Square playbook. Ackman cited prior purchases of Alphabet, Amazon and Meta as comparable situations. In each case, the firm bought during periods when AI competition or spending concerns had weighed on valuations. He expressed confidence in CEO Satya Nadella‘s focus on Copilot, Microsoft’s AI agent embedded across M365, saying direct leadership involvement should accelerate product development and customer adoption.
The disclosure arrived ahead of Pershing Square’s quarterly 13F filing. It also came weeks after Ackman launched two new publicly traded vehicles. The closed-end fund Pershing Square USA Ltd. trades as PSUS and last changed hands at $41.68, below its $50 IPO price. A separate listing covers the asset management business itself.
Read Next: Fed Holds Rates Steady as Inflation Data Remains Mixed