Bill Ackman sold 95% of his Alphabet stake in Q1 to fund new Microsoft position and increase Amazon holdings

In Q1, Ackman's Pershing Square Management fund took a new stake in Microsoft while increasing its Amazon position by 19%, funded by selling 95% of its Alphabet shares. Ackman had been trimming Alphabet since Q1 2023.

Ackman cited Microsoft's two highly valuable businesses (Microsoft 365 and Azure cloud computing), its 27% stake in OpenAI, and potential growth from Copilot rollout and a hybrid seat-and-consumption pricing model. For Amazon, he highlighted dominant e-commerce and AWS franchises with secular growth trends, and expects e-commerce to produce double-digit revenue growth while expanding margins.

Ackman noted that despite his bullish long-term outlook on Alphabet, he found Microsoft more attractive at current valuations. He expects Azure's capital expenditures to drive strong revenue growth and Amazon's data center infrastructure investments to deliver strong AWS returns.