5 Best Cloud Computing Stocks Heading into 2023

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 269

Microsoft Corporation (NASDAQ:MSFT) is one of the world’s leading cloud providers, offering a wide range of cloud-based products and services. The company’s Azure cloud platform is among the world’s most popular cloud platforms. Microsoft Corporation (NASDAQ:MSFT) continues to invest heavily in its cloud infrastructure. The company has poured hefty investments into its cloud infrastructure and has expanded its cloud services to include services such as artificial intelligence (AI) and machine learning (ML). The company’s track record of driving shareholder value and delivering strong financial performance places it on our list of the best cloud computing stocks to buy now.

On November 29, Morgan Stanley analyst Keith Weiss maintained an Overweight rating and his $307 price target on Microsoft Corporation (NASDAQ:MSFT).

At the close of Q3 2022, 269 hedge funds held stakes in Microsoft Corporation (NASDAQ:MSFT). The total value of these stakes amounted to $61.16 billion, up from $56 billion in the previous quarter with 258 positions. The hedge fund sentiment for the stock is positive. As of September 30, Bill & Melinda Gates Foundation Trust is the largest investor in Microsoft Corporation (NASDAQ:MSFT) and has disclosed a position worth $9.1 billion.

Here is what Alger Capital had to say about Microsoft Corporation (NASDAQ:MSFT) in its third-quarter 2022 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) is a positive dynamic change beneficiary of corporate America’s transformative digitization. Microsoft CEO expects technology spending as a percent of gross domestic product (GDP) to jump from about 5% now to 10% in 10 years and that Microsoft will continue to capture market share within the technology sector.

Microsoft’s shares underperformed during the period because the company slightly missed analysts’ estimates. The miss was due to foreign currency headwinds, weakening small business and consumer demand, and decreasing advertising activity. However, Microsoft showed that despite consumer, advertising, and small and medium business weakness; the company’s main business, the digitization of corporate America, continues to grow. We believe the secular forces of cloud adoption (azure and office 365) remain resilient, and the company’s commercial bookings growth attest to the continued demand for digital transformation.”