Brad Gerstner is Talking About These 5 Stocks

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 262

Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology firm. Gerstner, during his appearance on CNBC on May 3, underlined the “incredible” earnings of the company in the first quarter of 2022, noting that the cloud earnings of “hyperscalers” like Microsoft were alone $40 billion in scale. He also added that these cloud services, in which Microsoft is a leader, were growing at over 40%, smashing analyst estimates of a few years ago that had expected mid-teens growth for these businesses. 

On April 27, Morgan Stanley analyst Keith Weiss maintained an Overweight rating on Microsoft Corporation (NASDAQ:MSFT) stock with a price target of $372, appreciating the growth of the Azure services offered by the firm and “robust” guidance for the fourth fiscal quarter. 

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT)  with 26.8 million shares worth more than $9 billion.

In its Q4 2021 investor letter, Vulcan Value Partners, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:

“Microsoft Corporation (NASDAQ:MSFT) was a material contributor during the quarter. It is one of the highest quality companies in the world. We believe it has tremendous competitive advantages in its consumer and commercial Microsoft Office products as well as in its server and tools and Azure divisions. Over the last several years, Microsoft Corporation (NASDAQ:MSFT) has been implementing a successful transition from a traditional software license and maintenance revenue model to a subscription revenue model. The company remains competitively entrenched, produces strong free cash flow, and has a strong balance sheet.”