Obama Stock Portfolio: 5 Stocks to Consider

3. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 238

Microsoft Corporation (NASDAQ:MSFT) operates as a diversified technology company. Wedbush analyst Daniel Ives recently kept an Outperform rating on the stock and raised the price target to $375 from $350, underlining that the cloud business of the firm was growing and the fundamentals appeared solid as ever. 

Microsoft Corporation (NASDAQ:MSFT) was also recently named among a list of tech companies by Morgan Stanley that are expected to navigate supply chain issues and chip shortages better than peers to deliver impressive earnings for the third 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 24.8 million shares worth more than $6.7 billion.

In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:

“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”