Bill Ackman Explained Why He Just Bought Microsoft. But There Are Even More Reasons to Buy This “Magnificent Seven” Stalwart | The Motley Fool

On Friday, billionaire investor Bill Ackman disclosed that his publicly traded hedge fund, Pershing Square USA (PSUS 0.74%), had established a core position in Microsoft (MSFT +3.04%). Interestingly, according to Pershing’s 13-F filing, Ackman sold most of his fund’s position in Microsoft competitor Alphabet to do so.

Microsoft has lagged the market in 2026, especially other AI stocks, because of a combination of fears, and has fallen to one of its lowest valuations in the past decade.

Ackman thinks these fears are overblown. Yet even beyond Ackman’s defense of the company, there are even more interesting reasons to buy shares of this tech leader today.

The fears over Microsoft

Microsoft stock has recently been the victim of two overriding fears. The first is affecting all enterprise