What Makes Microsoft Corp. (MSFT) a Solid Long-Term Investment?

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q1 2025 investor letter. A copy of the letter can be downloaded here. The market faced a challenging start to 2025, with the S&P 500 Index declining 4.27% and the Russell 1000 Growth Index falling 9.97% in the first quarter. Against this backdrop, the fund dropped 7.21%, outperforming its growth benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, RiverPark Large Growth Fund highlighted stocks such as Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) is a multinational software company that develops and supports software, services, devices, and solutions. The one-month return of Microsoft Corporation (NASDAQ:MSFT) was 5.55%, and its shares gained 11.33% of their value over the last 52 weeks. On May 30, 2025, Microsoft Corporation (NASDAQ:MSFT) stock closed at $460.36 per share, with a market capitalization of $3.42 trillion.

RiverPark Large Growth Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q1 2025 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) shares were lower in the quarter despite reporting solid results. Investor expectations around AI monetization timelines moderated, and there was some rotation out of mega-cap tech. Microsoft remains a key enabler of enterprise digital transformation, with leading positions in cloud infrastructure, productivity software, and AI services. With durable growth, operating leverage, and strategic positioning across multiple secular trends, we remain highly confident in Microsoft’s long-term outlook.”

BofA Names Microsoft (MSFT) a Winner in Small-to-Mid-Size Business Software

A development team working together to create the next version of Windows.

Microsoft Corporation (NASDAQ:MSFT) is in second position our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 284 hedge fund portfolios held Microsoft Corporation (NASDAQ:MSFT) at the end of the first quarter compared to 317 in the third quarter. In the fiscal third quarter of 2025, Microsoft Corporation (NASDAQ:MSFT) reported $70.1 billion in revenues, up 13% year-over-year. While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Microsoft Corporation (NASDAQ:MSFT) and shared Impax Global Environmental Markets Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.