Five Undervalued Stocks Billionaire Investors Like

#3 eBay Inc (NASDAQ:EBAY)

– Number of Billionaire Investors (as of September 30): 17
– Total Value of Holdings (as of September 30): $2.0 billion

Analysts are bullish on auction giant eBay Inc (NASDAQ:EBAY), which spun off Paypal Holdings Inc (NASDAQ:PYPL) a few months ago. 34 of the 36 analysts covering eBay have a ‘Buy’ or ‘Hold’ rating with the analysts at Goldman Sachs recently assigning the tech stock a ‘Buy’ rating and $33 price target. Billionaires are also optimistic, as 17 billionaires, including Seth Klarman of Baupost Group and Dan Loeb of Third Point, own the stock. Given eBay’s high margins, strong balance sheet, and recovering growth rate, eBay’s forward P/E of 13.93 and price-to-free-cash-flow ratio of 10.16 looks cheap. Shares are up 16.26% year-to-date.

#2 Microsoft Corporation (NASDAQ:MSFT)

– Number of Billionaire Investors (as of September 30): 18
– Total Value of Holdings (as of September 30): $7.47 billion

Although Microsoft isn’t as dominant as it was in the 90’s with the PC in secular decline, Microsoft Corporation (NASDAQ:MSFT) is still a behemoth. For the fiscal 2015, the company reported an adjusted $2.63 per share in profits on revenues of $93.6 billion, easily making Microsoft one of the most profitable companies in the world. Under the leadership of CEO Satya Nadella, Microsoft is also rapidly moving beyond the PC and into the forefront of many long-term growth sectors such as cloud computing, and augmented reality. 18 billionaires own the stock because it’s cheap with a forward P/E of 17.34 versus the NASDAQ’s 19.54, and because it has great growth prospects given the larger role that technology and productivity software will play in everyone’s lives moving forward.

Follow Microsoft Corp (NASDAQ:MSFT)

Follow Ebay Inc (NASDAQ:EBAY)