American hedge-fund manager Bill Ackman recently announced that he is betting big on Microsoft stock (NASDAQ: MSFT). He disclosed that his investment arm, Pershing Square Capital has taken an entry position in MSFT in Q1 of 2026. The billionaire purchased 5.6 million shares of the tech giant, and the position is worth $2.09 billion. The asset accounts for about 5.3% of the overall figures in Pershing Square Capital.
Microsoft’s Business Model Difficult to Dislodge, Says Bill Ackman After Buying MSFT Stock
Bill Ackman’s purchase of Microsoft stock comes after the billionaire dumped Alphabet’s Google Class A stock (NASDAQ: GOOGL). He purchased Google stock in 2023 and stressed that the investment is for the long term. However, in three years, the hedge fund manager sold GOOGL to accumulate MSFT instead. The billionaire is now bullish on Microsoft stock due to its valuation.
Moreover, the billionaire clarified that selling Google stock for Microsoft has nothing to do with Alphabet’s revenue stream. “Selling Google is not a bet against the company. We are very bullish on Alphabet’s long-term prospects, but given current valuation considerations within our finite capital base, we used Google as a source of funds to buy Microsoft,” he said.
Also Read: NVDA Stock Price Target: Wall Street Reacts to Earnings Report
His statement continued that the essence of the investment swap occurred due to “capital allocation” and not a “strategic judgment.” Despite his statements, if you look closely, Bill Ackman made a significant move in owning Microsoft stock. MSFT suffered a major price pullback early this year, falling to as low as $356. It had fallen nearly 22% year-to-date, and was among the least performing Magnificent Seven stocks.
Selling Alphabet’s Google stock after minting profit and buying Microsoft at its low point remains a smart move. In this way, Bill Ackman will make a profit from both Google and Microsoft. The billionaire stressed that the Microsoft 365 suite is “deeply embedded” and has an economic moat, and explained that the business is “nearly impossible to dislodge.” His judgment could reap the benefits in the coming years, similarly to how he benefited from Google.