Bill Ackman Piled Into Microsoft and Amazon, Slashed Alphabet 95% — "Not a Bet Against Google"

Bill Ackman's Q1 2026 13F reveals a major Magnificent Seven rotation: he bought Microsoft and Amazon aggressively while slashing Alphabet by 95%. His message: this was not a bet against Google.

SEC Form 13F requires hedge funds to disclose their quarterly stock holdings publicly. Q1 2026 filings (covering January through March) show that Pershing Square Capital Management's Bill Ackman made sweeping moves within the Magnificent Seven — adding 5.65 million Microsoft shares and 1.84 million Amazon shares while selling 95% of his Alphabet position.

Microsoft: "21x Forward Earnings — Historically Attractive"

Ackman disclosed his Microsoft rationale before the 13F was filed. The February 2026 software stock selloff, combined with concerns about Azure cloud growth, pushed MSFT to a forward P/E of about 21x — roughly in line with the broader market and well below Microsoft's multi-year average. Ackman saw a price dislocation and pounced.

• MSFT shares added: 5,654,078 → now Pershing Square's 4th-largest position
• Purchase valuation: ~21x forward earnings (historically low for MSFT)
• MSFT current price: $419.93, market cap: $3.1 trillion
• MSFT gross margin: 68.31%
• Trigger: February software rout + Azure growth concerns creating temporary dislocation

We were able to establish our position at a valuation of 21 times forward earnings, broadly in line with the market multiple and well below Microsoft's trading average over the last few years.

Bill Ackman, Pershing Square Capital Management

Amazon: Started in Q2 2025, Now Pershing Square's #2 Holding

Ackman began accumulating Amazon in Q2 2025, when it was lagging other Magnificent Seven names. Since then, the integration of generative AI and large language model solutions into Amazon Web Services has reaccelerated AWS revenue growth — the company's highest-margin segment. Ackman added 1,844,157 shares in Q1 2026, making AMZN Pershing Square's second-largest position.

Alphabet: 95% Sold — "Not a Bet Against Google"

In Q1, Ackman sold 5,852,145 Class A shares and 645,921 Class C shares of Alphabet — reducing both positions by 95% from year-end 2025 levels. The optics look like abandonment. His explanation was more nuanced.

To be clear, our sale of $GOOG was not a bet against the company. We are very bullish long term on Alphabet. But at current valuations and in light of our finite capital base, we used $GOOG as a source of funds for $MSFT.

Bill Ackman (@BillAckman), X post on May 16, 2026

Alphabet's forward P/E has risen from under 17x a year ago to roughly 28x today. Google Cloud revenue surged 63% year-over-year in Q1 as AI integration accelerated. Ackman remains bullish on Alphabet long-term — but Microsoft at 21x was the more attractive near-term trade.

Investment Implication: Valuation Rotation Within the Magnificent Seven

Ackman's moves illustrate that even within the Magnificent Seven, valuation differences create meaningful investment opportunities. Microsoft and Amazon offered attractive entry points after periods of relative underperformance, while Alphabet's re-rating (from 17x to 28x forward earnings) reduced its near-term attractiveness despite accelerating cloud growth. Note: 13F filings reflect positions as of March 31; any moves since then will not be visible until the next quarterly filing.