Ackman bets on Microsoft as shares tumble 15%

Billionaire investor Bill Ackman's hedge fund Pershing Square announced on Friday that it will disclose a new position in Microsoft later that day, with Ackman calling the tech giant a highly compelling valuation. The disclosure comes from Pershing Square's newly launched closed-end fund Pershing Square USA, which debuted on the New York Stock Exchange last month and has recently made Microsoft a core holding, according to a post on social media platform X. The Microsoft investment reflects Ackman's growing appetite for tech holdings. In February, Pershing revealed it had purchased shares in Meta Platforms, betting that the Facebook parent will benefit from artificial intelligence. Last year, the fund made a new investment in Amazon, and previously invested in Alphabet in late 2022, demonstrating an increasingly concentrated focus on major technology companies. Microsoft shares have declined more than 15 percent so far this year, as investors grow concerned that the company's early-mover advantage in the AI race is eroding as competitors Google and Amazon make significant progress in their own artificial intelligence efforts.