5 Best Tech Stocks to Buy Now

3. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 238

Out of the 873 hedge funds in Insider Monkey’s extensive database, 238 funds were long Microsoft Corporation (NASDAQ:MSFT), with stakes worth $62.46 billion at the end of June.

The quarterly earnings for the second quarter were announced by Microsoft Corporation (NASDAQ:MSFT) on July 27. The reported earnings per share were valued at $2.17, beating estimates by $0.24. Microsoft Corporation (NASDAQ:MSFT)’s revenue of $46.15 billion also exceeded estimates by $1.85 billion. 

Baron Opportunity Fund mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q2 2021 investor letter. Here is what the fund said: 

“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”