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Billionaire Investor Doubles Down On AI, Boosts Stakes In Microsoft And Meta Despite 2025 Tech Volatility

Activist investor Dan Loeb’s Third Point LLC made major changes in its portfolio in the third quarter of 2025.

Let’s look at the performance of some Magnificent Seven stocks in the second half of 2025 held by Dan Loeb.

Strength in AI Drives Microsoft Growth

As of Sept. 30, 2025,Third Point increased its stake in Microsoft Corporation (NASDAQ:MSFT) by 175% to 1.1 million shares.

Microsoft witnessed strong earnings acceleration over the last couple of quarters, driven by Cloud and AI growth. Consequently, the company beat consensus estimates in both the fourth-quarter FY25 and the first-quarter FY26.

In October, Microsoft signed a new definitive agreement with OpenAI to support the company's formation of a public benefit corporation (PBC). Following the recapitalization, Microsoft will hold a stake of approximately 27% in OpenAI Group PBC valued at roughly $135 billion.

Wedbush analyst Dan Ives says the next stop for Microsoft could be joining Nvidia in the $5 trillion market capitalization club and adds that "it remains clear that FY26 remains the true inflection year of AI growth for Microsoft."  

In the last year, Microsoft declined 0.47%, underperforming the iShares U.S. Technology ETF (NYSE:IYW), which gained about 18.88%. Also, the company significantly lagged compared to its closest peers, Oracle Corporation (NYSE:ORCL), which fell roughly 5.61% year-to-date.

Meta Benefiting from AI & Data Center Expansion

As of Sept. 30, 2025, the activist investor boosted his stake in Meta Platforms, Inc. (NASDAQ:META) by 47% to ...