Bill Ackman built Microsoft stake in first quarter during sell-off, betting on AI and cloud growth
Bill Ackman's Pershing Square has acquired a stake in Microsoft, viewing the recent decline in the company's stock as an opportunity. Ackman noted that the investment was made at a valuation of 21 times forward earnings, which is in line with market averages. He clarified that the funds for this purchase came from selling shares of Alphabet, emphasizing a long-term bullish outlook on both companies.
- ▪Bill Ackman disclosed his investment in Microsoft in a post ahead of his firm's quarterly 13F filing.
- ▪Pershing Square began accumulating shares in February after Microsoft's stock declined following its fiscal second-quarter earnings report.
- ▪Ackman described the Microsoft stake as a 'core holding' but did not specify its size.
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Bill Ackman's Pershing Square has built a position in Microsoft, as the hedge fund manager said the software giant's recent pullback created a rare opportunity to buy one of the world's dominant technology franchises at a compelling valuation.Ackman disclosed the investment in a lengthy post Friday ahead of his firm's quarterly 13F filing, saying Pershing Square began accumulating shares in February after Microsoft's stock declined following its fiscal second-quarter earnings report."We were able to establish our position at a valuation of 21 times forward earnings, broadly in line with the market multiple and well below Microsoft's trading average over the last few years," Ackman wrote.
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