Ackman Bets Big on Microsoft After 15% Selloff

Bill Ackman's Pershing Square disclosed a new Microsoft position on May 15, 2026, calling the valuation highly compelling after the stock dropped 15% year to date. Ackman began accumulating shares in February following market fears over slower cloud growth and rising capital expenditure. Microsoft's latest quarter beat expectations with 18% revenue growth, 40% Azure expansion, and a $37 billion AI annualized run rate. The move follows Ackman's pattern of buying mega-cap tech during peak panic. His Alphabet purchase after the ChatGPT scare returned roughly 300%, while his post-Liberation Day Amazon buy is up 36%. Microsoft trades at a forward P/E of 21, its cheapest relative to growth in years, with 51 analyst buy ratings and a consensus target of $561.56.