10 Most Profitable NASDAQ Stocks Today

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 269

Net Income (TTM) as of June 30, 2022: $72.73 billion

On January 24, Microsoft Corporation (NASDAQ:MSFT) reported earnings for the fiscal second quarter of 2023. The company reported an EPS of $2.32 and outperformed EPS estimates by $0.01. The company’s revenue for the quarter amounted to $52.75 billion. In fiscal 2022, Microsoft Corporation (NASDAQ:MSFT) generated a net income of $72.73 billion. As of February 17, the stock has gained 7.71% year to date and is ranked among the most profitable NASDAQ stocks today.

At the close of Q3 2022, 269 hedge funds were eager on Microsoft Corporation (NASDAQ:MSFT) and disclosed positions worth $61.17 billion in the company. As of December 31, Bill & Melinda Gates Foundation Trust is the top shareholder in the company and has a position worth $9.41 billion.

Here is what Polen Capital had to say about Microsoft Corporation (NASDAQ:MSFT) in its fourth-quarter 2022 investor letter:

“In the case of Microsoft Corporation (NASDAQ:MSFT), the company is performing very well. Azure now represents nearly 25% of the total business and continues to compound at a higher rate. Although growth is moderating a bit recently (as it is for AWS and Google Cloud Platform as well), these three platforms collectively generated more than $140 billion in revenue during the last 12 months and are still growing at a healthy rate. Further, Microsoft Cloud, or commercial cloud (which includes Azure and other cloud services, Office 365 Commercial, the commercial portion of LinkedIn, Dynamics 365, and other cloud properties) continues to grow roughly 30% and is now about half the business. Mathematically, commercial cloud could decelerate to 20% growth with all other segments decelerating to zero growth and total company revenue growth would still be at least double digits. We believe Microsoft is positioned to compound underlying earnings per share at a midteens rate over the next five years. At 22x earnings, we felt the valuation was attractive and that it should be a large position.”