5 Stocks to Buy According to BlueSpruce Investments

3. Microsoft Corporation (NASDAQ:MSFT)

BlueSpruce Investments’ Stake Value: $700,653,000
Percentage of BlueSpruce Investments’ Portfolio: 11.36%
Number of Hedge Fund Holders: 259

After adjusting expectations lower to reflect the company’s new outlook given further foreign exchange headwinds, Jefferies analyst Brent Thill reiterated a Buy rating on Microsoft (NASDAQ:MSFT) and trimmed his price objective to $320 from $325 on June 13.

Microsoft Corporation (NASDAQ:MSFT) experienced a decline in hedge fund interest in Q1 2022, as 259 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the period, down from 262 in the preceding quarter. The aggregate value of stakes held by 259 hedge funds stood at over $65.64 billion.

BlueSpruce Investments started building its position in Microsoft Corporation (NASDAQ:MSFT) during the first quarter of 2020, buying shares worth over $258.95 million. The hedge fund increased its stakes in the company by 30%, owning shares worth roughly $700.65 million at the end of Q1 2022. The company represented 11.36% of the hedge fund’s 13F portfolio.

Here is what Baron Opportunity Fund has to say about 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.”