Ackman Bets Big on Microsoft, Meta, and Uber
Bill Ackman's new hedge fund, Pershing Square USA, has invested nearly half of its portfolio in just three stocks. The billionaire investor sees potential for Microsoft, Meta Platforms, and Uber to compound earnings growth quickly.
The largest holding is Microsoft, making up 17.9% of the portfolio, with Ackman arguing that the company's software suite is resilient to AI disruption. He expects Microsoft's earnings per share to grow at a compound rate of about 19% over the next three to five years.
Meta Platforms accounts for 14.7%, with Ackman calling it 'one of the clearest beneficiaries of AI'. He expects its earnings per share to grow at a compound rate of 22% over the same period, making its forward P/E look cheap.
Uber makes up 12.8% of the portfolio, with Ackman believing that the company's valuation has become disconnected from its fundamentals. He thinks Uber can grow earnings per share at a 25% rate over the next three to five years.