Ackman Bets Big on Microsoft, Dumps Alphabet for 20% Discount

Hedge fund manager Bill Ackman made significant moves in his portfolio last quarter, selling out of Alphabet (GOOG) and GOOGL to invest in Microsoft (MSFT).

Pershing Square, Ackman's investment firm, completely divested from Alphabet at the right time, as its stock has since dropped 15%.

Ackman bought into Microsoft when it was down around 20% from its Q2 highs, which may have been a savvy move given its booming cloud business and diversified AI strategy.

Microsoft's cloud revenue increased 27% to $59.3 billion last quarter, with remaining performance obligations rising 84% to $678 billion.