Bill Ackman Just Bet Big on Microsoft (MSFT) Stock — Here’s Why

TLDR

• Bill Ackman’s Pershing Square disclosed a new position in Microsoft (MSFT) via a 13F filing on Friday
• Ackman built the position starting in February at around 21x forward earnings, in line with the broader market multiple
• He funded the purchase by selling his long-held Alphabet (GOOGL) position, though stressed it was “not a bet against” Google
• Microsoft stock closed up 3% on Friday but is still down 17% year-to-date vs a 10% gain for the S&P 500
• Ackman believes Microsoft’s OpenAI stake (~$200B, or 7% of market cap) is not reflected in the current stock price

Bill Ackman’s Pershing Square has taken a new position in Microsoft (MSFT), disclosed in a 13F filing on Friday. Microsoft stock closed up 3% on the day, ending at $421.92.

Microsoft Corporation, MSFT

Ackman said he began building the position in February after a “meaningful” price decline following Microsoft’s fiscal Q2 2026 earnings. He said the fund entered at roughly 21 times forward earnings — broadly in line with the S&P 500 multiple and well below where Microsoft has historically traded.

Microsoft has had a rough year. The stock is down 17% in 2026 while the S&P 500 is up 10%.

The underperformance followed a Q3 earnings report that disappointed and raised questions about the pace of Azure growth. Microsoft also flagged $190 billion in capital expenditures for calendar year 2026 — up 61% year-over-year and about $35 billion above what Wall Street had expected.

Ackman acknowledged those concerns but argued investors are missing something bigger.

OpenAI Stake Overlooked

He pointed to Microsoft’s 27% stake in OpenAI, which he values at approximately $200 billion, or around 7% of Microsoft’s current market cap. In his view, that value is simply not being priced in.

Ackman also pushed back on fears about Microsoft 365 losing ground to AI competitors. He argued M365 is too deeply embedded in enterprise workflows — covering identity, security, compliance, and data governance — to be easily replaced by standalone AI tools.

To fund the Microsoft position, Ackman sold his long-held Alphabet stake. On Saturday, he clarified that the sale was not a negative call on Google.

Ackman Stays Bullish on Alphabet

On the technical side, Evercore ISI’s Rich Ross noted Microsoft has one of the “best acting charts” in tech right now, saying the stock has reclaimed its 50-day moving average with “authority” and pulled back to a long-term support level that has held since the European financial crisis.

Ackman has previous form with large-cap tech, having held Alphabet as a long-term position before pivoting to Microsoft.

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