
PERSHING Square Chief Executive Officer Bill Ackman (picture) said he’s taken a new stake in Microsoft Corp. after the shares declined, saying investors have underestimated the durability of the company’s software.
The hedge fund has made Microsoft a core holding, Ackman said in a post on X on Friday, calling it an opportunity to buy into the owner of “two of the most valuable franchises in enterprise technology” at a compelling valuation. Pershing Square will disclose the stake in a regulatory filing later on Friday, he said.
As 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 opportunities to acquire some of the most…
— Bill Ackman (@BillAckman) May 15, 2026
Shares of Microsoft, the world’s largest software company, declined 15% this year through Thursday’s close, while the benchmark Nasdaq Composite Index has gained about 15%. The company is battling concerns about adoption of its artificial intelligence assistant Copilot as well as whether the Microsoft 365 business can fend off new products from AI rivals. The Redmond, Washington-based company has also struggled to get data center capacity online quickly enough to keep up with demand for its Azure cloud service.
Ackman argued that the Microsoft 365 products are “deeply embedded” across large companies and supported by Microsoft infrastructure in a way that’s “nearly impossible to replicate.” Similarly, demand for Azure shows that concerns about its growth are “misplaced,” he said.
Microsoft shares erased earlier declines in premarket trading after the post. The stock had closed 1% higher at $409.43 in New York. –BLOOMBERG
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