5 Best Esports Stocks to Buy Now

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 302

Microsoft Corporation (NASDAQ:MSFT) was already a big name in the video gaming industry, and on top of that, it acquired Activision Blizzard in 2023. Activision Blizzard has produced several renowned online games such as World of Warcraft, Overwatch,  Heroes of the Storm, and more.  It is the top stock on our list of best esports stocks to buy now.

In the last three months, 33 Wall Street analysts covered Microsoft Corporation (NASDAQ:MSFT), and 31 kept a Buy rating on the stock. The average price target of $469.34 represents an upside of 15.54% as of March 8.

According to our database, 302 hedge funds held stakes in Microsoft Corporation (NASDAQ:MSFT) in the fourth quarter of 2023. With 38.21 million shares of the company, valued at $14.37 billion, the Bill & Melinda Gates Foundation Trust is the largest shareholder of the company, as of December 31, 2023.

RiverPark Advisors stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT): MSFT was a top contributor in the quarter following strong FY1Q24 earnings in late October. In that earnings report, MSFT delivered better-than-expected revenue (+13%) and earnings (+27%), with growth in both accelerating from the prior quarter. All three major segments grew revenue faster than expected, highlighted by 28% constant currency growth in Azure, the company’s cloud offering. This marked the first quarter-over-quarter acceleration for Azure in six quarters. Operating margins (48%) were 400 basis points better than expected and earnings came in 13% ahead of expectations.

Cloud-based services have become the company’s largest revenue and earnings producer. The company’s Azure platform alone has the potential to grow to more than $100 billion in annual revenue over the next decade. Overall, we believe that the company will continue to deliver double-digit revenue and EPS growth and generate an enormous amount of free cash flow to both return to shareholders and use for acquisitions.”

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