5 Top Stocks to Buy Today According to Rob Koehn’s Ivy Lane Capital

2. Microsoft Corporation (NASDAQ: MSFT)

Value: $23,297,000
Percentage of Ivy Lane’s 13F Portfolio: 16.47%
Number of Hedge Fund Holders: 238

Microsoft Corporation (NASDAQ: MSFT) is an American technology company that produces computer software, consumer electronics, smart devices, and also offers IT-related services. The company enables digital transformation for the cloud era.

In Q2, Ivy Lane did not change its position in Microsoft Corporation (NASDAQ: MSFT) and holds 86,000 shares in the company, worth $23.3 million. The company represents 16.47% of the hedge fund’s 13F portfolio. UBS included Microsoft Corporation (NASDAQ: MSFT) in its list of ‘overweight stocks’, with an overweight measure of 0.21% in the UBS metric. Recently, the firm lifted its price target on Microsoft Corporation (NASDAQ: MSFT) to $350, with a ‘Buy’ rating on the shares. In Q2 2021, the company reported a 21% year-over-year growth in revenue at $46.2 billion.

Of the 873 hedge funds tracked by Insider Monkey, 238 funds have positions in Microsoft Corporation (NASDAQ: MSFT) in the second quarter of 2021, worth over $62.4 billion.

Alger, an investment management firm, recently released its Q2 2021 investor letter and mentioned Microsoft Corporation (NASDAQ: MSFT) in it. Here is what the firm has to say:

“Microsoft Corp. was among the top contributors to performance. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Recently, Microsoft reported that Azure grew 50% during the past quarter.

This high-unit volume growth is a primary driver of the company’s higher share price, but Microsoft’s strong operating execution has enabled notable margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases. Microsoft’s chief executive officer, furthermore, reiterated his comment from a few months back, when he said he expects technology spending as a percent of GDP to jump from about 5% today to 10% in a few years and that Microsoft is well positioned to capture market share.”