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

Microsoft (MSFT) stock slipped 0.42% to $422.07 on May 15. The slide followed news that the Bill & Melinda Gates Foundation Trust had sold its entire $3.2 billion MSFT stake.

The headline number masks a planned event. The Trust has held the position for nearly three years. The cash funds grantmaking and prepares the endowment for a 2045 close.

Why the Gates Foundation Sold Microsoft Stock

As of this writing, MSFT stock was trading at 422.07 amid bearish sentiment following the Gates Foundation’s disposal of the last of its Microsoft shares.

However, the sale is liquidity-driven, not a bearish call on Microsoft. The foundation has publicly committed to lifting annual grantmaking to $9 billion by 2026.

Bill Gates announced a plan to wind down the entire endowment by 2045. Selling concentrated MSFT stock is the most direct route to that cash schedule.

Microsoft has anchored the Trust’s portfolio for decades because Gates donated billions in personal shares. The position grew so large that any drawdown plan starts with trimming MSFT first.

“The Bill & Melinda Gates Foundation did not purchase its Microsoft shares on the open market. The entire position was built through direct donations of Microsoft stock from Bill Gates’ personal wealth over many years. As a foundation, they do pay a small tax, but it’s not the standard capital gains tax. The sale of their Microsoft shares is subject to a federal excise tax of 1.39% on the net capital gains,” one user noted.

Ackman Steps In, Sellers Still Win the Tape

Investor Bill Ackman used the same day’s filings to disclose a new 5.65 million share Microsoft stake. Pershing Square Capital Management values the position at nearly $2.3 billion.

“In our 13F which we will file later today, we will disclose a new position in Microsoft, a company we have followed for many years now offered at a highly compelling valuation.” Ackman shared in a post.

Ackman framed his buy as a valuation bet on Microsoft’s AI franchise after February’s OpenAI cloud shift hit shares. He pegged the cost basis at 21 times forward earnings, well below the stock’s recent average.

Pershing Square’s quarter-long accumulation of 5.65 million shares accounted for only part of the foundation’s 7.7 million-share exit. The net supply weighed on intraday trade despite the bullish counter-narrative.

Bigger Picture for Microsoft

MSFT remains a core driver of the broader S&P 500 rally. The separate $9.7 billion IREN deal anchors sentiment around AI data-center demand.

The London Stock Exchange’s partnership with Microsoft adds another revenue lane. Whether the recent dip marks a buying window or a warning shot is the open question for the next earnings cycle.