Microsoft Stock Up 4 Percent After Investment Firm Takes $2B Stake

Microsoft shares jumped nearly 4 percent in Monday morning trading after reports surfaced that ValueAct Capital, a San Francisco-based investment firm, has taken a $2 billion stake in the company.

ValueAct's stake makes it one of Microsoft's top investors and its Microsoft investment would be a significant portion of the company's $12 billion holdings, according to CNBC.

Microsoft shares reached $31.18 Monday, up $1.42 compared with the previous close. It is the first time Microsoft shares have reached the $30 mark since last October.


Shares have settled somewhat during the morning but were still trading at $30.85 just before 12 p.m. EST.

Robert Kratzke, president of GlobeNet Solutions, a Port Jefferson, N.Y.-based solution provider, said ValueAct's investment is evidence that Microsoft is doing the right things and that the whole IT industry is looking good.

"With all the changes going on in the mobility space and the concept of any place, any device, it's evidence that their strategy is going in the right direction," Kratzke said.

The $2 billion investment is less than 1 percent of Microsoft's total market capitalization, about $257.2 billion as of Monday morning, but it's enough to get Wall Street buzzing. Meanwhile, many solution providers are still trying to find traction with customers selling Windows 8 solutions.