Ackman Sells Alphabet, Buys Microsoft Amid Market Shifts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2026
0mins
Source: Fool
- Strategic Shift: Billionaire Bill Ackman sold most of his stake in Alphabet during Q1 2026, reallocating funds to significantly increase his position in Microsoft, demonstrating his keen insight into market dynamics and adaptability.
- Value Investment Philosophy: Ackman clarified that the sale of Alphabet was not a negative outlook on the company; rather, he opted to redeploy capital into Microsoft, which had a forward P/E ratio of 21, indicating a higher margin of safety compared to Alphabet's current valuation.
- Opportunity Recognition: Amid the 'SaaS Apocalypse,' Microsoft’s stock price plummeted, and Ackman capitalized on this opportunity, underscoring the importance of identifying undervalued stocks during market volatility.
- Investor Takeaway: Ackman's actions serve as a reminder that even with finite capital, investors must continually assess their portfolios, sometimes selling strong stocks to achieve higher returns, highlighting the significance of risk management and margin of safety.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 373.940
Low
500.00
Averages
631.36
High
678.00
Current: 373.940
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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