Shares of Microsoft are trading up nearly $10 or 2.43% at $419.37, bucking the bias in the market which has a second exit down -1.26% in the S&P index down -0.8%.
Although higher on the day, the price of Microsoft has been a big underperformer for the year
The stock is still down -13.21% after closing the year at $483.62. The rise today comes after Billionaire investor Bill Ackman revealed that Pershing Square has built a new core position in Microsoft, arguing the recent selloff has created an attractive long-term opportunity. Microsoft shares are down more than 13% this year as investors worry about slowing cloud growth, rising AI spending, and the company’s evolving relationship with OpenAI.
Ackman believes those concerns are overdone and says the market is underestimating the durability of Microsoft’s enterprise software business. Ackman highlighted Microsoft’s Azure cloud platform and Microsoft 365 ecosystem — including Copilot AI — as key long-term strengths. He defended the company’s aggressive AI spending plans, saying the investments are necessary to support future growth.