Why Bill Ackman Thinks the Selloff in Microsoft Stock Is Misguided

Microsoft (MSFT) has been under pressure this year, and that pullback is exactly what caught the attention of Bill Ackman. On May 15, Pershing Square disclosed a new Microsoft stake after starting to build the position in February. Ackman said the valuation looked compelling after MSFT stock slid on slower cloud growth and a sharp rise in spending.

Shares of Microsoft jumped 3% on the news, serving as a reminder that Wall Street still treats the stock like a market heavyweight.