Top 5 Stock Picks of Ryan Frick and Oliver Evans’ Dorsal Capital Management

4. Microsoft Corporation (NASDAQ:MSFT)

Dorsal Capital Management’s Stake Value: $155,056,000

Percentage of Dorsal Capital Management’s 13F Portfolio: 7.57%

Microsoft Corporation (NASDAQ:MSFT) is a developer and producer of consumer electronics, computers, software, and related services. Dorsal Capital Management initiated a position in Microsoft Corporation (NASDAQ:MSFT) back in the third quarter of 2012.

Steve Koenig at SMBC started coverage on Microsoft Corporation (NASDAQ:MSFT) with a price target of $410 and an Outperform rating in an update to investors on December 21. The analyst thinks that Microsoft Corporation (NASDAQ:MSFT) is working successfully in shifting its customers towards cloud offerings and is in a position to benefit from the significant secular trends in the software industry. The analyst sees Microsoft’s Azure in close distance to Amazon Web Services (AWS) and forecasts Microsoft’s cloud computing services to surpass Amazon’s in the public cloud market by 2025.

Baron Funds shared its stance on Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter. Here’s what it had to say:

“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft’s results continued to be strong across the board, with total revenue beating Street estimates by 4.5%, an acceleration in Commercial Cloud revenue to 31% constant-currency growth, a four-point improvement in Commercial Cloud gross margins (to 70% from 66%), and GAAP earnings up 42%. We believe the company is positioned to deliver 13% to 15% organic growth over the next three years, underpinned by TAM expansion across its disruptive cloud product portfolio, as more companies look to transform and digitize their businesses, as well as strong operating leverage as its cloud products gain scale.”