Ackman's Big Bet: Amazon vs. Microsoft in the Cloud Computing Wars
Billionaire investor Bill Ackman's Pershing Square Capital Management made significant changes to its portfolio in the second quarter, selling Amazon (NASDAQ: AMZN) and buying Microsoft (NASDAQ: MSFT).
Ackman decreased his stake in Amazon by over 25% while increasing his stake in Microsoft by nearly 10%. The moves are reflected in a Form 13F filing with the SEC.
However, since Q2 ended, both companies' stocks have performed well. Microsoft is up an impressive 30%, while Amazon is up around 10%. This significant price movement changes how investors view these two as investments.
An analysis of the two companies' results for Q2 shows that Amazon's overall growth rate was 20% with operating income increasing by 43%. In contrast, Microsoft's revenue rose 18% year over year, but its earnings income also rose only 18%.