5 Best Cryptocurrency Stocks to Buy According to Hedge Funds

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 269

Microsoft Corporation (NASDAQ:MSFT) was one of the first technology firms to back the crypto industry. In 2014, the company partnered with Bitpay, allowing users to use Bitcoin as a payment method to purchase  apps and games for Windows Phone, Xbox, and Windows operating systems. At the end of September 2022, M12, Microsoft Corporation (NASDAQ:MSFT)’s venture capital arm, led a $20 million funding round for Web3 startup Space and Time as the company focuses on decentralization of data.

On November 29, Morgan Stanley analyst Keith Weiss said that investors are concerned that Microsoft Corporation (NASDAQ:MSFT)’s estimates have not been derisked and contended that short-term investor concerns primarily fall into two categories, margins and revenue growth. However, he sees a solid and durable demand in the commercial businesses that should result in accelerating revenue and EPS growth in the second half of 2023, said the analyst, arguing that Microsoft Corporation (NASDAQ:MSFT)’s “unique positioning as a consolidator” should drive demand that holds up better than investors fear. He has an Overweight rating and a $307 price target on Microsoft Corporation (NASDAQ:MSFT) shares.

According to Insider Monkey’s Q3 data, 269 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 258 funds in the earlier quarter. Bill & Melinda Gates Foundation Trust is the largest position holder in the company, with 39.2 million shares valued at $9.14 billion. 

Diamond Hill made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2022 investor letter:

“Also among our bottom contributors were media and technology giant Alphabet, software and IT services provider Microsoft Corporation (NASDAQ:MSFT) and insurance company American International Group (AIG). Microsoft shares declined in Q3, along with other tech companies, as rising interest rates impacted the near-term outlook. We expect the business to continue to generate strong revenue growth and benefit from operating leverage. Microsoft’s cloud computing services business, Azure, is generating robust growth, confirming its competitive positioning.”

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