Bill Ackman Bought Google After the ChatGPT Panic (Up 300%). He Bought Amazon After Liberation Day (Up 36%). Now He's Backing Up The Truck Again.

Key Points:

• Bill Ackman's Pershing Square recently disclosed a new position in Microsoft, calling its valuation "highly compelling" despite market concerns over slower growth and increased capital expenditure.
• Ackman has a history of buying mega-cap tech stocks during market panics, including Alphabet after fears around generative AI, Amazon following tariff-related retail jitters, and Meta amid capex worries, all of which have since seen positive returns.
• Microsoft’s recent strong financial performance includes 18% revenue growth, a 40% expansion in Azure, and a $37 billion annualized AI business run rate, though concerns remain over its $190 billion spending plan and changes in its OpenAI partnership.
• At a trailing P/E of 24 and forward multiple of 21, Microsoft is trading at a historically low valuation relative to its growth and profitability, with strong analyst support and bullish market sentiment indicators.
• The pattern suggests that investing in durable mega-cap companies during periods of negative sentiment can yield significant rewards over time, with Ackman betting that Microsoft will follow the positive trajectories seen in Alphabet and Amazon.