Hedge fund manager Bill Ackman has built a new position in Microsoft’s (MSFT) stock.
Ackman, who is closely followed by retail investors, said he invested in Microsoft as the software giant’s share price decline this year, creating a rare buying opportunity.
MSFT stock is down 13% on the year as the company has gotten caught in the selloff of software companies due to fears of artificial intelligence (A.I.) disruptions.
Ackman disclosed the Microsoft investment in a lengthy social media post ahead of his firm’s quarterly 13F regulatory filing.
The famed investor says he began accumulating Microsoft shares in February of this year.
“We were able to establish our position at a valuation of 21 times forward earnings, broadly in line with the market multiple and well below Microsoft’s trading average over the last few years,” wrote Ackman on X.
He added that Wall Street has become overly concerned about Microsoft’s competitive positioning in A.I. and the durability of its Azure cloud computing business.
Ackman said the company’s Office productivity suite, known as M365, remains deeply embedded across enterprises and difficult to replicate.
MSFT stock is now 26% below its all-time high of $555.45 U.S. reached in July of last year.
