Billionaire David Tepper’s Top 10 Stock Picks

4. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders as of Q4: 317

Appaloosa Management’s Equity Stake: $408.86 Million

Microsoft Corporation (NASDAQ:MSFT) continues to demonstrate strategic leadership in cloud computing, artificial intelligence, and next-generation technologies, underscoring its resilience and adaptability within an evolving tech landscape. In its most recent quarterly results, the company reported a 12.27% year-over-year increase in revenue, reaching $69.63 billion, with earnings per share exceeding market expectations at $3.23. This performance was largely driven by the strength of its cloud segment, which accounted for approximately 43% of total revenue in fiscal year 2024.

Microsoft Corporation (NASDAQ:MSFT) announced the upcoming shutdown of Skype, its pioneering video-and-voice calling service, scheduled for May 5. Though apps like WhatsApp and FaceTime have overtaken Skype in popularity for free audio and video calls, Skype has continued to serve as a valuable and affordable tool for international mobile and landline communication. Users have been able to prepay for calling minutes stored in their accounts, while chat messages and Skype-to-Skype video calls remained free. In preparation for the shutdown, Microsoft clarified that it would not refund the remaining Skype account balances, which has given users cause for concern.

Amit Fulay, Vice President of Product for Skype and Teams, noted that transferring funds from Skype accounts to other Microsoft services, such as Office subscriptions, would not be possible. Fulay reasoned that since basic call services would remain available for Skype customers transitioning to Teams, refunds were unnecessary. Microsoft Corporation (NASDAQ:MSFT) has not disclosed how much unspent credit remains across Skype accounts globally, leaving some users uncertain about how they might fully utilize their balances before the shutdown. This transition marks another step in Microsoft’s broader effort to streamline its communication platforms and align them with its enterprise-focused Teams service.

As of Q4 2024, Appaloosa Management held 970,000 shares of Microsoft Corporation (NASDAQ:MSFT) in its portfolio, valued at over $408 million and making it one of Billionaire David Tepper’s top 10 stock picks.