Key Insights on Microsoft Investments by Billionaire Managers
Bill Ackman of Pershing Square, Jeremy Grantham of GMO, and Cliff Asness of AQR Capital Management significantly increased their holdings in Microsoft, according to their recent SEC filings. Ackman acquired about $2 billion worth of Microsoft stock, making it a key position for his fund. Grantham’s GMO purchased over 900,000 shares, while Asness raised his stake by 60%, positioning Microsoft as AQR’s second-largest holding.
This surge in investments aligns with Microsoft trading at its lowest price since the start of 2024. The company reported a 40% revenue growth in its Azure cloud segment last quarter and a 17% increase in its enterprise software, driven by the commercial adoption of its AI assistant, Copilot. Microsoft’s strong revenue performance is underpinned by a $627 billion backlog in contracted revenue, and it currently trades at 21 times earnings—deemed a bargain by these investment titans.
Investors looking for solid opportunities might consider following these billionaires, as Microsoft is projected to grow revenue at double-digit rates, benefiting from increased demand for cloud services and subscriptions to its AI products.
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