Top 5 Blue Chip Stocks To Buy Today

1. Microsoft Corporation (NASDAQ:MSFT)

No of Hedge Funds: 234

Total Value of Hedge Fund Holdings:  $42 Billion

Microsoft Corporation is an American multinational corporation founded in 1975. The company develops, produces, markets computer software, consumer electronics, etc.,

During the third and fourth quarter of 2020, the company saw a higher demand in cloud usage and higher demand for WindowsOEM brought about by the lockdown during the Covid-19 pandemic.

As the quarter ended in September 2020, Microsoft Corporation reported revenue of $37.2 billion an increase of 12%, and an operating income of $15.9 billion an increase of 25%. Riverpark Partners has seen the huge increase in Microsoft shares coming last year. Here is what they said:

Microsoft has, we believe, entered a second chapter of market-leading growth that will drive the company’s revenue and profits for years to come. Microsoft’s Cloud Infrastructure offering is in the fastest growing segment of the cloud services market (including software-as-a-service (SaaS)), a market that is characterized by recurring revenues, strong pricing, high levels of customer engagement and high margins. The overall Infrastructure-as-a-Service (IaaS) industry is growing more than 30% per year and is forecast to reach $100 billion of revenues by 2021. We believe that cloud-based services can become the company’s largest revenue and earnings producer and expect Microsoft to generate significant and growing free cash flow ($11 billion last quarter, up 19% year-over-year). The company should deliver at least mid-to-high teens EPS growth, with upside from deploying its $134 billion cash balance ($7 billion was returned to shareholders in the quarter through dividends and share buybacks). We trimmed our position on strength, and Microsoft remains a top five position in in the Fund.”

Please also see 30 Most Popular Stocks Among Hedge Funds and 10 Best Catalyst-Driven Value Stocks to Buy Now