Microsoft (MSFT) Gains from Bill Ackman's $2.09 Billion Stake Purchase

Bill Ackman's Pershing Square Capital Management disclosed a new position in Microsoft (MSFT) valued at approximately $2.09 billion at the end of Q1 2026. The stake, comprised of about 5.65 million shares, increased in value to roughly $2.3 billion by May 15. Ackman purchased these shares at a valuation of 21 times forward earnings, aligning with market multiples but below Microsoft's historical average. He argues that near-term spending concerns have mispriced the stock while emphasizing the long-term potential of key products like Azure and Microsoft 365 Copilot.