Hedge Funds Prefer These 4 Tech Stocks Over Netflix

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 262

Microsoft Corporation (NASDAQ:MSFT) is a Washington-based tech giant. The company has multiple drivers of growth in the coming years, including the Azure web services business, the Office subscription software business, and the gaming business. The firm is also famous for successful acquisitions. As the $75 billion deal to acquire Activision matures, it is worth considering that the revenue of LinkedIn, another blockbuster Microsoft purchase from a few years ago, has seen revenue triple since the takeover. 

On February 8, Morgan Stanley analyst Keith Weiss maintained an Overweight rating on Microsoft Corporation (NASDAQ:MSFT) stock with a price target of $372, identifying the firm as a “durable EPS growth story” and a “strong buy”. 

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.”