{"id":4833,"date":"2026-05-15T15:17:23","date_gmt":"2026-05-15T15:17:23","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=4833"},"modified":"2026-05-15T15:17:23","modified_gmt":"2026-05-15T15:17:23","slug":"why-bill-ackman-is-betting-on-microsoft-as-ai-fears-hammer-the-stock","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=4833","title":{"rendered":"Why Bill Ackman is betting on Microsoft as AI fears hammer the stock"},"content":{"rendered":"
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Billionaire investor Bill Ackman revealed Friday that Pershing Square has built a new position in Microsoft. <\/p>\n

He argued that recent weakness in the software giant\u2019s stock has created an attractive long-term investment opportunity despite growing concerns over artificial intelligence competition and heavy spending.<\/p>\n

Ackman disclosed the investment in a post on social media platform X, describing Microsoft as a company trading at a \u201chighly compelling valuation.\u201d <\/p>\n

He said Pershing Square began accumulating shares in February after Microsoft\u2019s stock declined following weaker-than-expected December-quarter results.<\/p>\n

Microsoft shares (MSFT) have fallen more than 13% this year and remain well below their highs from late last year as investors reassess the company\u2019s AI spending plans, cloud growth outlook, and evolving relationship with OpenAI.<\/p>\n

The stake is expected to be formally disclosed in a regulatory filing later Friday.<\/p>\n

Ackman sees value in Microsoft\u2019s AI position<\/h2>\n

Ackman framed Microsoft as one of several technology investments Pershing Square has made during periods when Wall Street became overly concerned about near-term risks.<\/p>\n

In his post, Ackman highlighted Microsoft\u2019s Azure cloud-computing platform and its Microsoft 365 software suite as two of the company\u2019s most valuable businesses.<\/p>\n

The Microsoft 365 ecosystem includes products such as Excel, Word, and the company\u2019s Copilot artificial intelligence assistant, which is priced at roughly $30 per month for enterprise users.<\/p>\n

\u201cWe will disclose a new position in Microsoft, a company we have followed for many years now offered at a highly compelling valuation,\u201d Ackman said, adding that Pershing had now made Microsoft a \u201ccore holding.\u201d<\/p>\n

Ackman also argued that investors were underestimating the durability of Microsoft\u2019s enterprise software business.<\/p>\n

He said investors \u201cunderestimate the resilience\u201d of the Microsoft 365 subscription suite, \u201cgiven its deeply embedded role across enterprises and highly attractive price-value proposition.\u201d\u00a0<\/p>\n

Microsoft has spent aggressively to expand its AI infrastructure and cloud capabilities as competition intensifies across the technology sector. <\/p>\n

The company recently outlined plans to spend approximately $190 billion during 2026<\/a>, a figure that has raised concerns among some investors about profitability and return on investment.<\/p>\n

Ackman defended the spending plan, describing it as necessary to support future growth.<\/p>\n

OpenAI partnership concerns seen as overblown<\/h2>\n

Much of Wall Street\u2019s recent caution toward Microsoft has centered on its changing relationship with OpenAI and fears that competitors such as Alphabet and Amazon are narrowing Microsoft\u2019s early lead in enterprise AI.<\/p>\n

Microsoft\u2019s stock also weakened after investors questioned slowing cloud-computing growth alongside rapidly increasing capital expenditures.<\/p>\n

Ackman pushed back against concerns surrounding Microsoft\u2019s revised OpenAI partnership structure, which no longer gives the company exclusive rights to resell OpenAI\u2019s technology through Azure.<\/p>\n

\u201cWe view Microsoft’s recent decision to restructure its OpenAI partnership not as a concession but as part of a deliberate pivot toward a more open, multi-model architecture that better serves enterprise customers,\u201d Ackman said.<\/p>\n

Ackman additionally said Wall Street was failing to fully account for Microsoft\u2019s economic interest in OpenAI, which he estimated was worth \u201capproximately $200 billion.\u201d<\/p>\n

OpenAI has reportedly been exploring plans for an initial public offering as early as this year.<\/p>\n

Pershing continues technology investment strategy<\/h2>\n

The Microsoft investment marks the latest large technology bet by Ackman and Pershing Square.<\/p>\n

Ackman noted that Pershing previously purchased Alphabet shares in 2022 after concerns emerged that ChatGPT could disrupt Google\u2019s search business.<\/p>\n

The firm also bought Amazon shares following last year\u2019s tariff-driven market selloff tied to President Donald Trump\u2019s \u201cLiberation Day\u201d trade measures.<\/p>\n

More recently, Pershing established a large position in Meta Platforms after investors reacted negatively to the company\u2019s elevated AI spending forecasts.<\/p>\n

Last month, Ackman launched a new stock-picking vehicle called Pershing Square USA, though shares in the fund fell sharply after its trading debut despite strong institutional participation.<\/p>\n<\/p>\n

The post Why Bill Ackman is betting on Microsoft as AI fears hammer the stock<\/a> appeared first on Invezz<\/a><\/p>\n

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Billionaire investor Bill Ackman revealed Friday that Pershing Square has built a new position in Microsoft. He argued that recent weakness in the software giant\u2019s stock has created an attractive long-term investment opportunity despite growing concerns over artificial intelligence competition and heavy spending.Ackman disclosed the investment in a post on social media platform X, describing…<\/p>\n","protected":false},"author":1,"featured_media":4834,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-4833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/4833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4833"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/4833\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/4834"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}