NEW YORK, May 16, 2026, 06:21 (EDT)
- Pershing Square owned 5.65 million Microsoft shares worth around $2.09 billion at the end of March, according to its latest 13F.
- Microsoft finished Friday with a 3.1% rise at $421.92, which puts its weekly gain near 1.6%.
- U.S. cash equity markets are shut Saturday. Nasdaq will open again for its next regular session on Monday.
Microsoft is ending the week with Bill Ackman’s Pershing Square as a new investor. The hedge fund disclosed a $2.09 billion stake, putting fresh money into the software company during a week when most of big tech pulled back.
Microsoft’s rising AI spending and new pressures on growth stocks from the bond market are both in focus for investors, making the filing important now. The 13F, a backward-looking report showing quarter-end U.S. equity holdings for big money managers, gets close attention if a major investor picks up a fresh position.
Microsoft (MSFT) climbed 3.05% to $421.92 on Friday, hitting a session high of $428.17. The stock gained around 1.6% for the week from its May 8 close. That move came as the Nasdaq Composite lost ground over the week.
Ackman called Microsoft’s valuation “highly compelling.” Matt Britzman at Hargreaves Lansdown said the shares had “scope to re-rate from current levels.” Britzman told Reuters the recent weakness in the stock is “not justified.” wtaq.com
Pershing’s sale of its Alphabet stake to raise cash for Microsoft sent a signal across big tech. Alphabet’s Google and Amazon are still head-to-head in AI and cloud, where companies buy computing and storage online instead of operating their own servers.
Microsoft put up strong March quarter numbers. Revenue rose 18% to $82.9 billion, with Microsoft Cloud up 29% at $54.5 billion. Azure and other cloud services climbed 40%. CEO Satya Nadella said their AI business “surpassed an annual revenue run rate of $37 billion,” which is the current annualized rate. Microsoft
Microsoft’s capital spending continues to climb. The company logged $30.9 billion in additions to property and equipment for the March quarter, pushing the total to $80.1 billion for the first nine months of its fiscal year. That spending covers data centers, servers, and network gear.
Friday was rough for equities. The S&P 500 gave up 1.24%, the Nasdaq slid 1.54%, and the Dow slipped 1.07%. At the same time, the 10-year Treasury yield surged 13.8 basis points to 4.597%. One basis point means one-hundredth of a percentage point. “The market had gotten way ahead of itself,” said Slatestone Wealth’s Kenny Polcari. Reuters
No shift expected from the Fed in June, according to market odds. Oddpool’s data had Kalshi at 97.0% and Polymarket at 98.1% betting the Fed holds rates, while Polymarket’s Fed page listed “No change” at 98% and “0 cuts” through 2026 at 70%. Oddpool
The risk is Ackman’s bid doesn’t beat out macro headwinds. Higher oil, steady yields above recent levels, or traders betting harder on new rate hikes could all weigh on Microsoft’s valuation again. The company has already warned about tough competition, risks in delivering cloud and AI, and the real chance big investments won’t meet management’s hopes.
Markets head into Monday watching Treasury yields and crude prices, with Microsoft in focus after closing Friday near $422. Traders are looking at the $428 mark—if Microsoft pushes through that level, the Ackman narrative stays in play. But if it slips toward $409.43, that could signal the wider Nasdaq selloff is still in charge.
Nasdaq looks set for a cautious start, with yields still in focus. If bonds settle, the mood could shift. Microsoft could outperform peers, if Pershing’s filing is seen as backing the AI spending story, but in the end, the next session is more about the impact of higher rates on the megacaps than about one 13F.
