Microsoft Gains as Ackman Reveals New Stake

Shares of Microsoft climbed more than 3% on Friday, outperforming the broader technology sector during a weak trading session for major tech stocks.

The rally came after billionaire investor Bill Ackman disclosed that his hedge fund, Pershing Square Capital Management, had built a new position in the software giant.

Ackman said the market is underestimating Microsoft’s long-term strength, particularly the durability of its Microsoft 365 business. He argued that the subscription platform remains deeply embedded across global enterprises and continues to offer a strong value proposition for customers.

Microsoft shares have faced significant pressure this year, falling roughly 12% amid a broader software-sector selloff and growing investor concerns about rising artificial intelligence spending. The stock has also dropped around 25% from its peak reached last fall.

Despite those concerns, Ackman believes the company’s AI investments are not fully reflected in its current valuation. Investors have increasingly debated whether massive AI infrastructure spending by large technology firms will generate sufficient long-term returns, though Microsoft remains one of the biggest beneficiaries of enterprise AI adoption through products tied to cloud computing and productivity software.

The stock’s gains stood out during a broader decline in technology shares, highlighting renewed investor confidence after Ackman’s endorsement of Microsoft’s business model and AI positioning.


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