Ackman's $220 Billion Bet on Cloud Computing
Billionaire investor Bill Ackman made headlines by selling off Amazon stock and buying Microsoft during Q2 at his investment firm Pershing Square Capital Management.
Ackman decreased his Amazon stake by over 25% while increasing his Microsoft stake by nearly 10%, a move that has piqued the interest of investors seeking new ideas or to challenge their current views.
However, since Q2 ended, both Amazon and Microsoft have seen significant growth. Amazon is up around 10% and Microsoft is up an impressive 30% after strong earnings reports sent shares skyrocketing.
Amazon's overall growth rate during Q2 was 20%, with operating income increasing by 43%. This was largely driven by the success of Amazon Web Services (AWS), which delivered better-than-expected results. AWS revenue is expected to continue growing as Amazon pours $220 billion into data center capital expenditures in 2026.
Microsoft's results for the fourth quarter of fiscal year 2026, ended June 30, were also good but not quite as strong as Amazon's. Microsoft's revenue rose 18% year over year, with earnings income rising the same amount.