Bill Ackman’s Strategy: Why Microsoft Offers Better Long-Term Value Than SpaceX

Bill Ackman’s Strategy: Why Microsoft Offers Better Long-Term Value Than SpaceX

June 16, 2026 discoverhiddenusacom Business

Hedge fund manager Bill Ackman is prioritizing high-quality, undervalued companies like Microsoft over high-momentum IPOs, according to comments made on the “All-In” podcast. While investors have flocked to the SpaceX IPO, which reached a $2.52 trillion valuation, Ackman’s strategy focuses on long-term durability and “boring” quality rather than market novelty.

Pershing Square (NYSE:PS) and Pershing Square USA (NYSE:PSUS) entered public markets one month ago. Market reception has been more positive for Pershing Square than for Pershing Square USA, though the latter currently trades at a discount on net asset value (NAV).

Why is Bill Ackman prioritizing Microsoft over new IPOs?

Ackman believes investors are currently overlooking high-quality companies that are relatively cheap in favor of “new new” stocks, according to the “All-In” podcast. He has recently made a significant purchase of Microsoft (NASDAQ:MSFT) as part of a concentrated investment approach.

Why is Bill Ackman prioritizing Microsoft over new IPOs?

While Microsoft may be viewed as old-fashioned or less exciting than recent IPOs, the strategy emphasizes long-term risk/reward. This approach seeks to generate alpha by identifying bargains that are hiding in plain sight amidst extreme market momentum.

Did You Know? SpaceX entered the market with a price-to-sales (P/S) multiple eclipsing 110 times.

How does the SpaceX IPO compare to quality value stocks?

Space Exploration Technologies (NASDAQ:SPCX) saw shares gain nearly 20% on its first full day of trading on Monday. The company holds a $2.52 trillion valuation and provides exposure to both the AI revolution and the emerging space economy, according to the source.

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However, the company faces significant financial hurdles, including hefty losses piling up specifically for its AI efforts. This contrasts with the value-oriented approach of Pershing Square, which avoids the risk of overstretching via high premiums.

Expert Insight: Samantha Carter notes that the tension between SpaceX’s visionary goals and its current profitability suggests a high-risk trade-off. Investors are essentially betting on the “novelty” of space exploration and AI potential against the proven, albeit slower, stability of established tech giants.

What could happen to momentum-driven investments?

A rotation away from momentum stocks could be sparked by higher interest rates or a potential pullback in spending by hyperscalers. If this occurs, quality-focused portfolios like those managed by Pershing Square may be better positioned to thrive.

What could happen to momentum-driven investments?

Investors may continue to rotate toward the semiconductor industry and the “chokepoints” of the AI boom, specifically the energy infrastructure and connectivity layers. However, the long-term outcome depends on whether the market continues to reward novelty over undervaluation.

Frequently Asked Questions

What is the difference in market reception between Pershing Square and Pershing Square USA?
The reception for Pershing Square (NYSE:PS) has been more positive than for Pershing Square USA (NYSE:PSUS), though PSUS offers a discount on net asset value (NAV).

What are the primary risks associated with the SpaceX IPO?
Risks include a price-to-sales multiple exceeding 110 times, a $2.52 trillion valuation that assumes significant success, and substantial losses related to AI efforts.

Which sectors are currently seen as “hot” rotations besides SpaceX?
The semiconductor industry and AI boom chokepoints, such as connectivity and energy infrastructure, are identified as current areas of investor interest.

Do you believe long-term stability in “boring” stocks outweighs the potential gains of high-momentum IPOs?