5 Best Social Commerce Stocks To Buy

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 250

Microsoft Corporation (NASDAQ:MSFT), one of the biggest US tech firms, has several subsidiaries including LinkedIn, Skype, GitHub, and Yammer, among others. LinkedIn is a social networking platform for professionals to connect, network, look for employment, and it is one of the best recruiting websites worldwide. As of Q3 2021, Microsoft Corporation (NASDAQ:MSFT)’s LinkedIn has about 740 million users. 

LinkedIn is one of the best social commerce platforms, where people discuss new products, innovative services are showcased, and professionals link their profiles to their Upwork Inc. (NASDAQ:UPWK) and Fiverr International Ltd. (NYSE:FVRR) accounts so clients can reach them for their services directly. In addition to that, smaller brands link their products in their page descriptions, company representatives engage in direct selling with users, and brands promote their products via LinkedIn posts and polls, keeping their target audience engaged and actively interested in the products and services.

SMBC Nikko analyst Steve Koenig on December 21 initiated coverage of Microsoft Corporation (NASDAQ:MSFT) with an Outperform rating and a $410 price target.

One of the leading Microsoft Corporation (NASDAQ:MSFT) stakeholders is Arrowstreet Capital, with almost 18 million shares worth more than $5 billion. In Q3 2021, 250 hedge funds reported owning stakes in Microsoft Corporation (NASDAQ:MSFT), up from 238 funds in the preceding quarter. 

Here is what Baron Opportunity Fund has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter:

“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft’s results continued to be strong across the board, with total revenue beating Street estimates by 4.5%, an acceleration in Commercial Cloud revenue to 31% constant-currency growth, a four-point improvement in Commercial Cloud gross margins (to 70% from 66%), and GAAP earnings up 42%. We believe the company is positioned to deliver 13% to 15% organic growth over the next three years, underpinned by TAM expansion across its disruptive cloud product portfolio, as more companies look to transform and digitize their businesses, as well as strong operating leverage as its cloud products gain scale.”

You can also take a look at 10 Stocks to Buy and Hold According to Bill Gates and Top Stock Picks of Michael Burry.

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