M365 News & Analysis

Microsoft (MSFT) Stake Built by Ackman at 21 P/E Ratio During Selloff

Bill Ackman’s Pershing Square has acquired a stake in Microsoft (MSFT), taking advantage of the stock's decline of over 26% since its July 2025 high. Ackman disclosed the investment was made at a valuation of 21 times forward earnings, which aligns with the market multiple. He highlights concerns among investors regarding Microsoft’s competitive positioning in AI and the growth of its Azure cloud services. Despite these issues, Ackman emphasizes the integral role of Microsoft 365 in enterprise solutions and expresses confidence in the company’s R&D initiatives related to AI.