5 Best Roth IRA Stocks to Buy According to Reddit

4. Microsoft Corporation (NASDAQ: MSFT)

Number of Hedge Fund Holders: 251

Microsoft Corporation (NASDAQ: MSFT) stock has offered investors returns exceeding 34% over the course of the past twelve months. It is a Washington-based firm that makes and sells computer software and related services. It is placed fourth on our list of 10 best Roth IRA stocks to buy according to Reddit. On June 30, telecom firm AT&T announced that it would be selling its network cloud service to Microsoft and moving its 5G network data to cloud servers operated by the software giant. 

On June 23, Microsoft Corporation (NASDAQ: MSFT) became the second company after Apple to cross $2 trillion in market capitalization, marking a key milestone for the firm as it ramps up spending on cloud and enterprise software. 

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ: MSFT)  with 23.9 million shares worth more than $5.6 billion.

In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ: MSFT) was one of them. Here is what the fund said:

“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”