"He also pointed out that Microsoft’s market capitalization does not yet reflect its 27% economic interest in OpenAI—worth approximately $200 billion at the startup’s most recent funding round valuation, he said. The Microsoft buy continues Ackman’s pattern of stepping into Big Tech during periods of AI-re"
Pershing Square Capital Management established a new position in Microsoft, accumulating shares starting in February after the stock fell following Q2 earnings. The stake was described as a core holding without disclosing size. The purchase price was characterized as 21 times forward earnings, broadly aligned with the market multiple and below Microsoft’s recent trading average. Microsoft’s stock has declined year-to-date amid concerns about Azure revenue supporting AI spending and changes to AI partnerships that removed exclusive distribution rights. The restructuring is viewed as a pivot toward a multi-model architecture for enterprise needs. The 365 productivity suite is described as deeply embedded and difficult to replicate. Capex concerns are addressed as growth investment following a J-curve pattern, and Microsoft’s market value is said to understate its economic interest in OpenAI.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]