5 Best Reddit Stocks To Invest In

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 258

Microsoft Corporation (NASDAQ:MSFT) is a Washington-based diversified technology company.

The investor community at Reddit understands that Microsoft Corporation (NASDAQ:MSFT) is pivoting away from one-time payment for its consumer electronics goods and looking for recurring revenue from its cloud computing segment. There is a consensus amongst market observers that Microsoft Corporation (NASDAQ:MSFT) has a better outlook than Apple due to its bet on the cloud computing segment. Market observers believe that the company will experience low-to-mid-teens annual YoY growth in revenue for the next five years. Meanwhile, the operating margins are expected to expand by 2% as cloud computing is a higher-margin business.

In its Q1 2022 investor letter, Baron Funds shared its outlook on Microsoft Corporation (NASDAQ:MSFT). Here’s what the firm said:

“Shares of mega-cap software company Microsoft Corporation (NASDAQ:MSFT) pulled back with the broader software sector. The company posted another solid quarter, highlighted by total revenues increasing 20% and Microsoft Cloud revenues, now 45% of total revenues, growing 32%. These results were driven, in large part, by strong demand for large Azure contracts. We believe Microsoft can compound revenue in the low double digits for the next three years, underpinned by its expansion in its total addressable market and market share gains.”

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