Microsoft (MSFT) Stock: Why the Gates Foundation Just Dumped $8.8 Billion in Shares

TLDR

• Gates Foundation Trust sold 65% of its Microsoft stake in Q3 2025, reducing holdings from $13.9 billion to $4.76 billion
• Microsoft stock dropped 8% this week and fell 12% from its late-October peak near $555 per share
• The sale appears driven by portfolio rebalancing and the foundation’s plan to increase annual grants to $9 billion by 2026
• Insider trading shows 12 sales and zero purchases over the past six months, with CEO Satya Nadella selling 149,205 shares
• Wall Street analysts maintain 25 buy ratings with median price target of $639, well above current $487 trading level

The Gates Foundation Trust sold approximately 17 million Microsoft shares during the third quarter. This represents a 65% reduction in its position.

The stake dropped from $13.9 billion to $4.76 billion. Microsoft now ranks as the fourth-largest holding in the foundation’s portfolio.

Microsoft Corporation, MSFT

Berkshire Hathaway took the top spot at $10.9 billion. Waste Management and Canadian National Railway also rank higher than Microsoft.

The timing coincides with a rough patch for the stock. Microsoft shares fell 8% this week alone.

The stock trades around $487 per share. That’s down 12% from its late-October peak near $555.

Microsoft has been a core holding for the Gates Foundation for years. Bill Gates regularly donated his personal shares to the trust.

Just one year ago, the Microsoft position represented one-third of the total portfolio. The foundation also trimmed other major holdings during Q3.

It completely exited positions in Crown Castle and United Parcel Service. The moves appear tied to portfolio rebalancing rather than concerns about Microsoft’s business.

Foundation’s Spending Plans Drive Sales

The Gates Foundation plans to ramp up annual grants to $9 billion by 2026. The organization aims to fully spend down its endowment by 2045.

Reducing concentration in a single stock makes sense for these goals. The foundation needs reliable cash flow for global health and education programs.

Diversifying into stable holdings like Berkshire Hathaway follows standard endowment practices. The Trust still owns over 9 million Microsoft shares.

Insider Activity Paints Broader Picture

Company insiders have been selling too. CEO Satya Nadella sold 149,205 shares over the past six months for $75.3 million.

Vice Chair Bradford Smith sold 38,500 shares for nearly $20 million. Chief Marketing Officer Takeshi Numoto sold 8,850 shares for $4.4 million.

The pattern shows 12 insider sales and zero purchases during this period. Institutional investors remain split on the stock.

UBS Asset Management added 109 million shares in Q3. BlackRock increased its position by 10.3 million shares.

Goldman Sachs added 7.8 million shares. But Kingstone Capital Partners exited its entire 90.5 million share position.

BNP Paribas Asset Management also sold its complete 5 million share stake. The Gates Foundation’s sale ranks as the third-largest institutional reduction.

Congressional trading activity shows 21 purchases and 19 sales over six months. Senator Markwayne Mullin bought up to $500,000 worth on November 3.

Representative Cleo Fields made 12 purchases totaling up to $2 million. Senator Shelley Moore Capito executed five sales worth up to $145,000.

Wall Street analysts issued 25 buy ratings with zero sell ratings. The median price target sits at $639.

Wells Fargo set a $700 target price. Morgan Stanley targets $650.

Bernstein aims for $645. The most conservative target came from Rothschild at $500.

The stock received $294 million in government contracts over the past year. Microsoft Azure and consulting services made up the bulk of these awards.

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