Here Are This Elite Fund’s Top 5 Stock Picks

In this article, we discuss the top five stock picks of Stephen Mandel’s Lone Pine Capital. To read the performance and investment philosophy of the firm, go directly to Here Are This Elite Fund’s Top 10 Stock Picks.

5. Microsoft Corporation (NASDAQ:MSFT)

Percentage of Lone Pine Capital’s Stock Portfolio: 5.51%

Microsoft Corporation (NASDAQ:MSFT) is a Washington-based multinational corporation that offers software products, services, and hardware products.

On November 20, Wedbush Securities analyst Dan Ives reaffirmed an Outperform rating and a $425 price target on Microsoft Corporation (NASDAQ:MSFT) stock. The firm commented that the company’s decision to hire Sam Altman and Greg Brockman for AI research has made it stronger with regard to the AI segment. 

On November 15, Microsoft Corporation (NASDAQ:MSFT) introduced its first-ever two in-house processors, the Maia 100 chip and the Cobalt 100 chip. The chips will help the corporation to compete with semiconductor and data center companies like NVIDIA Corporation (NASDAQ:NVDA), Intel Corporation (NASDAQ:INTC), and Advanced Micro Devices, Inc. (NASDAQ:AMD).

Jackson Peak Capital mentioned Microsoft Corporation (NASDAQ:MSFT) in its third quarter 2023 investor letter. Here is what it said:

“The Microsoft Corporation (NASDAQ:MSFT)/Activision Blizzard, Inc. (NASDAQ:ATVI) merger arbitrage came to a successful conclusion with the court denying the FTC’s preliminary injunction request. The deal subsequently received approval from the UK CMA and closed in October. The ATVI position was an example of “staying around the hoop” of a significant arb opportunity. At first, the position led to a small loss in Q2 when the UK CMA initially blocked the deal in April, but we stayed close to the case, analyzed the FTC trial and scaled up the ATVI position as it became apparent FTC had a weak case, meaning the probability of the deal going through was mispriced by the market since the companies would likely find a solution to work with the UK CMA (only global regulator who had an issue) if the FTC lost.”