Hedge Funds are Selling Microsoft and Buying These 5 Tech Stocks Instead

2. Facebook, Inc. (NASDAQ:FB) 

Number of Hedge Fund Holders: 266   

Number of Hedge Fund Holders in Q1: 257

Facebook, Inc. (NASDAQ:FB) is placed second on our list of 10 tech stocks hedge funds are buying instead of Microsoft. The company operates as a technology firm and is headquartered in California. 

On September 22, investment advisory BMO Capital maintained an Outperform rating on Facebook, Inc. (NASDAQ:FB) stock with a price target of $425. Daniel Salmon, an analyst at the advisory, issued the ratings update. 

At the end of the second quarter of 2021, 266 hedge funds in the database of Insider Monkey held stakes worth $42 billion in Facebook, Inc. (NASDAQ:FB), up from 257 in the preceding quarter worth $40 billion. 

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Facebook, Inc. (NASDAQ:FB) was one of them. Here is what the fund said:

“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”