Key Points
Billionaire hedge fund manager Bill Ackman, founder of Pershing Square Capital Management, acquired 5.7 million shares of Microsoft (NASDAQ: MSFT) valued at $2.1 billion earlier this year, making Microsoft his fourth-largest holding at 15.2% of his portfolio. This investment was revealed in a May 13F filing.
Since Microsoft’s earnings report on July 29, the stock surged approximately 25%, climbing from $390 per share to $488 per share as of August 5. The company reported an 18% rise in revenue and a 32% increase in earnings for the fiscal quarter ending June 30, exceeding estimates, while Azure cloud revenue grew by 43%.
Despite the recent rise, Microsoft is trading at around 25 times earnings, still below its historical average P/E ratio of 31, suggesting ongoing investment potential.
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