Bill Gates Foundation Sells $3.2B Microsoft Stake, Ackman Buys In

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Microsoft Hit by $3.2 Billion Sell-Off From Bill Gates Foundation

Microsoft (MSFT) stock decreased by 0.42% to close at $422.07 on May 15th. This drop came after the Bill & Melinda Gates Foundation Trust sold all of its $3.2 billion worth of Microsoft shares.

The main figure hides a scheduled change. The Trust has maintained this role for almost three years. It manages funds for charitable giving and is preparing the endowment to cease operations in 2045.

Why the Gates Foundation Sold Microsoft Stock

At the time of this report, Microsoft (MSFT) stock was trading at $422.07. This followed negative feelings in the market after the Gates Foundation sold all of its remaining shares in the company.

This sale isn’t a sign that investors are worried about Microsoft; it’s simply to free up cash. The foundation has also announced it plans to increase its yearly charitable giving to $9 billion by 2026.

Bill Gates plans to spend all of the foundation’s money by 2045. To do this, the simplest way is to sell off a large amount of Microsoft stock.

The Bill and Melinda Gates Foundation has completely sold off its entire stake in Microsoft, totaling 7.7 million shares.

— The Kobeissi Letter (@KobeissiLetter) May 15, 2026

For decades, Microsoft stock has been a core holding in the Trust’s investments, thanks to Bill Gates’ substantial personal donations of shares. This holding became so significant that any strategy to reduce the portfolio’s value typically begins with selling off some of its Microsoft stock.

The Bill & Melinda Gates Foundation didn’t buy its Microsoft stock like regular investors. Instead, Bill Gates personally donated Microsoft shares to the foundation over many years. While the foundation does pay some taxes, it’s not the typical tax on investment profits. When they sell those Microsoft shares, they’re subject to a 1.39% federal tax on the profit they make, according to one observer.

Ackman Steps In, Sellers Still Win the Tape

Bill Ackman, a well-known investor, revealed a new investment in Microsoft, purchasing 5.65 million shares. This stake is currently worth almost $2.3 billion for his firm, Pershing Square Capital Management.

Bill Ackman announced in a recent post that his firm will reveal a new investment in Microsoft when it files its latest 13F report later today. He noted they’ve been watching Microsoft for years and felt the price made it a good opportunity.

Bill Ackman purchased Microsoft stock believing it was undervalued, particularly after Microsoft’s deal with OpenAI caused a dip in the share price. He bought the stock at a price equivalent to 21 times its expected future earnings, which was lower than its typical valuation.

Pershing Square bought 5.65 million shares over the last three months, but this was overshadowed by a larger sale of 7.7 million shares by the foundation. This overall increase in available shares put downward pressure on the stock price during trading, even though some investors were optimistic.

Bigger Picture for Microsoft

Microsoft (MSFT) continues to be a major force behind the overall gains in the S&P 500. The recent $9.7 billion agreement with IREN further reinforces positive feelings about the growing demand for AI data centers.

The London Stock Exchange’s deal with Microsoft creates a new source of income. It remains to be seen if the recent drop in stock price is a good opportunity to buy, or a sign of further declines, and we’ll likely find out in the next earnings report.

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2026-05-16 14:52