Renowned Investor Shifts Entire Portfolio from Alphabet to Microsoft: What This Means for You

Key Points

• Pershing Square, led by CEO Bill Ackman, fully exited its position in Alphabet and acquired a 5.65 million-share stake in Microsoft during Q1 2026.

• Microsoft’s total revenue rose 18% year-over-year to $82.9 billion, driven by a 39% increase in Azure growth, whereas Alphabet’s Google Cloud revenue surged 63% year-over-year to $20 billion.

• Microsoft is facing intensified competition from cloud rivals, raising concerns about its market position even as it commits to $190 billion in capital expenditures for 2026.

In an update shared on May 15, 2026, Bill Ackman disclosed that Pershing Square had exited its investment in Alphabet (NASDAQ: GOOG) and simultaneously acquired a 5.65 million-share stake in Microsoft (NASDAQ: MSFT). This strategic shift came as Alphabet’s stock surged approximately 23% year-to-date, reaching all-time highs, while Microsoft’s stock is down about 14% in the same period.

Despite Microsoft reporting an 18% increase in revenue to $82.9 billion for the fiscal third quarter, its cloud service, Azure, showed steady growth at 39% year-over-year. In comparison, Alphabet’s Google Cloud witnessed a remarkable 63% revenue growth. The development is critical as Microsoft prepares for heightened competition in the cloud space, coinciding with a substantial $190 billion capital expenditure planned for 2026.