5 Best Technology Stocks To Buy Now

2. Microsoft Inc (MSFT)

Microsoft Corporation (MSFT), also known as Microsoft, is a multinational technology company with headquarters in Redmond, Washington, in the United States. It manufactures computer software, consumer electronics, personal computers, and related services. The Windows range of operating systems, the Microsoft Office package, and the Internet Explorer and Edge web browsers are some of its best-known software offerings. Nevertheless, its stock price went up nearly 1000% over the past decade or so because it transformed itself into a cloud computing company. 

Microsoft is focusing on innovating AI and ALT tech innovations. Microsoft makes most of its money from its cloud computing business. Microsoft Cloud revenue was $25 billion in Q2 and it was up 28% year over year.  Because of its strong cloud business, the market awarded MSFT with a trailing PE ratio of 29.

Here is what Polen-Capital-Global-Growth-Funds has to say about Microsoft in its Q1 2022 investor letter:

“ Microsoft and Accenture’s businesses are both firing on all cylinders and continue to enjoy an acceleration in their respective fundamentals because of the increase in digitization around the world. Nearly every company today is searching for ways to become more digital, and both Microsoft and Accenture are positioned to provide many of the solutions these companies seek. This inflection in fundamentals was not lost on the market, and each business’s stock performed exceptionally well in 2021”

Baron Opportunity Fund was also bullish on Microsoft Corporation (NASDAQ:MSFT) in its Q1 2022 investor letter:

“Shares of mega-cap software company Microsoft Corporation (NASDAQ:MSFT) pulled back with the broader software sector. The company posted another solid quarter, highlighted by total revenues increasing 20% and Microsoft Cloud revenues, now 45% of total revenues, growing 32%. These results were driven, in large part, by strong demand for large Azure contracts. We believe Microsoft can compound revenue in the low double digits for the next three years, underpinned by its expansion in its total addressable market and market share gains.”