Paroh was no fool. The Torah does not discuss fools. He celebrated the birthday because it deserves celebration. HOWEVER he celebrated it the wrong way. Since he considered himself a god, he celebrated himself as the source of his existence. The correct way to celebrate it is to recognize that Hashem is the Source of his existence and on that day an extention and reflection of that Source was brought to this world. This is a cause for celebration since every year on that day that energy is once again renewed (to a lesser degree). This is why his mazal is considered to be stronger on that day and is a good time to give brachos to others in addition to being mispallel for oneself and others.
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