Pershing Square Builds Microsoft Stake at 21 Times Earnings, Makes It a Core Holding
Pershing Square CEO Bill Ackman said the firm’s 13F filing later in the day will disclose a new position in Microsoft, which it began building in February following a meaningful share-price decline after the company’s fiscal Q2 2026 results. He said Microsoft has since become a core holding and still offers compelling value.
Ackman said Pershing established the position at about 21 times forward earnings, arguing the valuation understates the strength of Microsoft 365 and Azure, which he said account for about 70% of the company’s overall profit. He cited more than 450 million daily Microsoft 365 users, 15% constant-currency revenue growth for that business last quarter and 39% growth at Azure.
From the sources (6 posts)
@billackmanAs two of the largest forces in equity markets -- growing index ownership and increasing amounts of capital controlled by extremely short-term-oriented, leveraged, volatility-intolerant investors -- converge, we have found occasional opport
@firstsquawkACKMAN: WILL DISCLOSE A NEW POSITION IN MICROSOFT
@wallstengineBill Ackman says Pershing Square made $MSFT “a core holding” after it began building the position in February. He says Microsoft “offers compelling value.”
@stocksavvyshayBILL ACKMAN DISCLOSES NEW POSITION IN $MSFT
@businessPershing Square CEO Bill Ackman says he’s taken a new stake in Microsoft after a recent decline in the share price
@stocksavvyshayHe says Pershing Square started building a $MSFT position in February and has now made it a core holding. He says Microsoft still “offers compelling value.”