By Omor Ibne Ehsan
Publication Date: 2026-05-18 18:05:00
Quick Read
Microsoft (MSFT) generated Q3 FY2026 revenue of $82.89B (up 18.3% YoY), with Azure growing 40% and AI business reaching $37B annually (up 123% YoY), while trading at a P/E of 25x and generating $627B in contracted future revenue. Alphabet (GOOGL) has outperformed MSFT by 37% year to date, though Google Cloud grew 63% last quarter with a $460B backlog.
Bill Ackman is rotating from Alphabet into Microsoft because the enterprise AI leader has sold off 11% year to date despite triple-digit AI growth, creating a valuation disconnect that historically precedes Pershing Square’s successful turnarounds.
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After selling off significantly, Microsoft (NASDAQ:MSFT) looks compelling on the numbers, and Bill Ackman appears to agree. Pershing Square has reportedly been loading up on…
