Source: Fortune
Summary
Bill Ackman’s hedge fund, Pershing Square Capital Management, has taken a new position in Microsoft, disclosed in a lengthy post on X. The stake, described as a “core holding,” was accumulated in February after Microsoft’s stock fell 10% following Q2 earnings. Ackman sees Microsoft’s cloud business as undervalued and believes the company’s 365 productivity suite is “deeply embedded” in enterprises and “nearly impossible to replicate.”
Our Reading
The strategy enters a familiar phase.
Ackman’s move is a classic contrarian bet, stepping into Big Tech during periods of AI-related skepticism. He’s made similar moves with Alphabet, Amazon, and Meta. Microsoft’s stock is down 15% year-to-date, but Ackman sees value in its cloud business and productivity suite. The $190 billion capex budget is seen as a growth investment, not a threat to margins. Ackman’s optimism is a signal.
Ackman is playing the “confidence card” during uncertainty, a familiar move in corporate language.
Author: Evan Null
