Pershing Square USA Acquires Microsoft Stake at 26% Discount, 21x Forward Earnings
Pershing Square USA acquired a position in Microsoft at a 26% discount to its July 2025 record high, buying in at 21 times forward earnings. Bill Ackman cited Azure’s robust growth, M365’s enterprise integration and Copilot’s AI potential as reasons to designate the software giant a core holding.
1. PSUS Builds Position in Microsoft
Pershing Square USA disclosed it has built a new position in Microsoft after the stock fell over 26% from its July 2025 record. The entry price equates to roughly 21 times forward earnings, positioning it as a core holding for the trust.
2. Valuation Rationale and Entry Point
Bill Ackman described the pullback as a rare buying opportunity on one of the world’s leading software franchises. The 26% decline from the prior high translated into a valuation in line with the broader market by his estimate.
3. Bull Case: Enterprise Integration and AI Potential
Ackman highlighted Microsoft 365’s deep entrenchment across enterprises and Azure’s sustained growth as key drivers. He also underscored Copilot’s strategic role, citing direct involvement from CEO Satya Nadella as a catalyst for adoption.
4. Bear Case and Risk Factors
Microsoft’s stock has underperformed due to two consecutive quarters of lagging AI monetization and concerns over Azure’s durability. A failure to ramp AI returns or competitive pressures from other AI platforms could lead to further share declines.