5 Cheap Social Media Stocks to Buy According to Hedge Funds

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 259

P/E Ratio as of April 4: 32.18

Microsoft Corporation (NASDAQ:MSFT)’s social media applications include LinkedIn, Yammer, Microsoft Teams, Skype, Microsoft Stream, and Flipgrid. It is one of the best social media stocks to invest in. According to Morgan Stanley, the most recent CIO survey suggests that IT spending will remain stable and Microsoft Corporation (NASDAQ:MSFT) has favorable fundamentals. The survey showed several forward-looking indicators that indicate Microsoft’s strong relative position if 2023 budgets come under pressure. The company has widened its lead in expected IT wallet share gains. Based on the survey, Morgan Stanley believes that Microsoft Corporation (NASDAQ:MSFT) is “increasingly well positioned” and reiterated an Overweight rating with a $307 price target on the shares on March 30. 

According to Insider Monkey’s fourth quarter database, 259 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 269 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the biggest position holder in the company, with 39.2 million shares worth $9.4 billion. 

Diamond Hill Large Cap Concentrated Strategy made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q4 2022 investor letter:

“Other bottom contributors to return included railroad operator Union Pacific, software and IT services provider Microsoft Corporation (NASDAQ:MSFT), and banking and financial services company Truist Financial. Union Pacific and Microsoft, though among our bottom contributors, still contributed positively to performance in Q4 as their share prices rose 7% and 3%, respectively. Truist’s stock ended flat in Q4.”

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