Ackman buys Microsoft as Loeb exits Microsoft, adds Alphabet

Bill Ackman’s Pershing Square Capital Management built a new Microsoft stake in Q1 2026, while Daniel Loeb’s Third Point sold its entire Microsoft position. Ackman said Pershing began buying Microsoft after a meaningful share price decline following the firm’s fiscal Q2 2026 results, establishing the position around 21x forward earnings. The Q1 13F filing showed Pershing held about 5.65M Microsoft shares (~$2.09B), about 5.3% of its disclosed U.S. equity portfolio. In contrast, Third Point exited Microsoft completely (sold 925,000 shares) after holding it since late 2022. The same quarter, Third Point added roughly 175,000 Alphabet shares. On Meta Platforms, both hedge funds opened new positions in Q1. Ackman also framed Microsoft’s AI-driven capex as long-term infrastructure investment rather than near-term cost pressure, noting Microsoft’s ~27% economic interest in OpenAI and highlighting Azure and Microsoft 365 as core enterprise franchises. Microsoft projects 2026 capital expenditures around $190B, reflecting an acceleration in data center and AI infrastructure spending. Overall, the trades suggest hedge funds are becoming more selective within the “Magnificent Seven,” with Ackman more bullish on Microsoft’s enterprise AI/cloud thesis and Loeb favoring Alphabet at current valuations.