Bill Ackman shifts Alphabet stake into Microsoft amid AI market shifts
Bill Ackman’s hedge fund, Pershing Square, sold its entire Alphabet stake in the second quarter of 2026 and reinvested in Microsoft. The move followed Microsoft’s 20% drop from its Q2 highs, though the stock has since rebounded near all-time highs. Ackman’s decision came as Microsoft’s cloud revenue surged 27% year-over-year to $59.3 billion, with remaining performance obligations rising 84% to…
Key points
- Pershing Square sold all Alphabet shares in Q2 2026 and reinvested in Microsoft, which had fallen ~20% from its Q2 highs
- Microsoft’s cloud revenue grew 27% to **$59.3 billion**, with remaining performance obligations rising 84% to **$678 billion**
- Microsoft’s commercial software revenue grew 14% YoY, countering AI disruption fears, and its P/E ratio was in the low 20s
The article frames Microsoft’s valuation as attractive at the time of Ackman’s purchase, citing a forward P/E ratio in the low 20s—a discount compared to peers like Alphabet. Microsoft’s diversification beyond OpenAI and strong cloud commitments are highlighted as key factors supporting its recovery. The piece also suggests the AI market is entering a second phase, with global rollout ahead, though no external validation is provided for this claim.
The story so far
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Bill Ackman Sold Alphabet to Buy an AI Stock Down Roughly 20% From Its High. Was That the Right Call?
finance.yahoo.com · 30 September 2026
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This text was published by finance.yahoo.com and written by Brett Schafer, The Motley Fool. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
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