5 Best Content Delivery Network Stocks To Buy Now

1. Microsoft Corp. (NASDAQ:MSFT)

Number of Hedge Fund Holdings: 258

Based in Redmond, Washington, Microsoft Corp. (NASDAQ:MSFT) is an American multinational technology corporation which specializes in computer software, consumer electronics, personal computers, and other related services. Microsoft Azure is a cloud computing service operated by Microsoft Corp. (NASDAQ:MSFT) for application management via company-operated data centers. Azure CDN enables developers to distribute high-bandwidth content to users swiftly, by caching their content at strategically placed physical nodes across the globe.

On October 4, Oppenheimer analyst Timothy Horan lowered the price target on Microsoft Corp. (NASDAQ:MSFT) to $275 from $300, keeping an Outperform rating on the shares. The analyst contends that since a significant portion of the company’s revenue stream is defendant on Productivity Software and Cloud Computing, the company is relatively more immune to impending economic headwinds than other players in the sector. Microsoft’s (NASDAQ:MSFT) current valuation has moderated itself to pre-pandemic levels, making it an excellent investment opportunity for the right investor. Moreover, the analyst contends that the expansion of Microsoft Azure will boost the profitability of the stock, with contractual revenues shielding the stock from macroeconomic headwinds and driving upside potential. As share price multiples plummet to nearly 40% from highs, the price target is set to rise to more than $300 over the next quarter.

Here is what Diamond Hill Capital Management had to say about Microsoft Corp. (NASDAQ:MSFT) in their Q2 2022 investor letter:

“The recent market environment has enabled us to initiate positions in some high-quality names that have sold off indiscriminately and are trading at prices we haven’t seen in quite some time. Microsoft Corporation (NASDAQ:MSFT) is one example. Microsoft’s stock price declined amid the broader selloff of technology companies. This presented an opportunity for us to purchase shares at an attractive discount to our estimate of the intrinsic value. We expect the business to continue generating strong revenue growth and benefiting from operating leverage. Microsoft’s cloud computing services business, Azure, is also generating robust growth, confirming its competitive positioning.”

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