Bill Ackman built Microsoft stake in first quarter during selloff, betting on AI and cloud growth

Key Points:

• Pershing Square, led by Bill Ackman, has built a position in Microsoft, viewing the recent stock pullback as a rare buying opportunity at a compelling valuation of 21 times forward earnings.
• Ackman began accumulating shares in February after Microsoft's stock declined post its fiscal Q2 earnings, despite concerns over AI competition and the impact on Microsoft's growth, particularly in its Azure cloud business.
• Ackman emphasized Microsoft's strong position with its Office productivity suite (M365) and ongoing R&D investments in AI, including the Copilot AI agent, which he believes will drive future product adoption and growth.
• The investment parallels Ackman's previous purchases in Alphabet, Amazon, and Meta during times of market skepticism about AI, reflecting his confidence in Microsoft's long-term competitive positioning.
• This move comes shortly after the IPOs of Pershing Square USA Ltd. (PSUS) and Pershing Square Inc. (PS), offering investors different exposures to Ackman's investment strategies, with PSUS currently trading below its IPO price.