5 Best Technology Stocks to Buy According to Billionaire Dan Loeb

4. Microsoft Corporation (NASDAQ:MSFT)

Third Point LLC’s Stake Value: $451,072,000

Percentage of Third Point LLC’s 13F Portfolio: 2.46%

Microsoft Corporation (NASDAQ:MSFT) is a $2.5 trillion tech giant that can be broadly divided into three business segments, namely Cloud and AI Group, Experiences and Devices, and Technology and Research. The Redmond, Washington-based company is the 11^th biggest holding in Third Point’s portfolio through 1.6 million shares.

On November 22, Michael Turrin at Wells Fargo commenced coverage on Microsoft Corporation (NASDAQ:MSFT) stock with an Overweight rating and a price target of $400, reflecting a potential upside of over 18%. The analyst sees a “bright future ahead” with an opportunity to grow in “huge categories” of the IT sector. The analyst pinpointed the growth of Azure along with its presence everywhere and impressive margin profile in the research note.

Polen Capital mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter. Here’s what the investment management firm said:

“After modest Portfolio activity during the second quarter of 2021, activity increased during the third quarter. We would broadly characterize the various trades into two objectives: 1) managing risk, and 2) managing valuation. In both cases, we aimed to maintain the Portfolio’s growth profile. In aggregate, we believe we were able to increase expected earnings growth while reducing risk and the overall portfolio valuation… We also trimmed Microsoft, which had grown to nearly 10% of the Portfolio. At an 8% weighting, it still represents one of our largest positions.”