5 Most Important Tech Layoffs to Watch

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 258

Microsoft Corporation (NASDAQ:MSFT) laid off 1,800 employees in July, and let go of 200 more workers in the beginning of August, from one of its customer-focused R&D projects. On July 26, Microsoft Corporation (NASDAQ:MSFT) reported its Q2 results, posting an EPS of $2.23 and a revenue of $51.87 billion, falling short of Wall Street consensus by $0.07 and $493.37 million, respectively. 

Guggenheim analyst John DiFucci initiated coverage of Microsoft Corporation (NASDAQ:MSFT) on August 11 with a Neutral rating and a $292 price target. While he believes Microsoft Corporation (NASDAQ:MSFT) can boost revenue and free cash flow, supported by upside in Azure and Office Commercial 365, he sees continued declines in Windows that are still “not fully reflected in consensus estimates,” the analyst told investors.  

According to Insider Monkey’s data, Microsoft Corporation (NASDAQ:MSFT) was part of 258 hedge fund portfolios at the end of Q2 2022, compared to 259 funds in the prior quarter. Chris Hohn’s TCI Fund Management is one of the leading position holders in the company, with a stake worth $5 billion. 

Here is what Ave Maria specifically said about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2022 investor letter:

“Microsoft Corporation (NASDAQ:MSFT)’s cloud business is nearly half of the company’s revenue and the largest business in Microsoft, with Office 365 being the second largest. The cloud business helps customers save money, so it is somewhat recession-proof. Office 365 allows customers to purchase low annual subscriptions, as opposed to purchasing expensive license agreements every few years. This could keep the revenue stable in a tough economic environment. We believe the company will be able to maintain mid-teen revenue growth for the foreseeable future.”

You can also take a look at Best Defensive Stocks Under $50 and Best High-Yield Dividend Stocks for Retirees in 2022. 

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