5 Stock Picks of Late Julian Robertson’s Tiger Management

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 259

Julian Robertson’s Tiger Management’s Holdings: $26,736,000

Percentage of Julian Robertson’s Tiger Management’s Portfolio: 11.78%

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

Experts believe that Microsoft Corporation (NASDAQ:MSFT) can grow its top line and free cash flows (FCF) by an average in the mid-teens percentage due to the upside offered by the Azure cloud services and Office 365 Commercial. The biggest publicly listed company in the world is expected to experience secular growth in the cloud computing industry as it is set to compound annually at an average rate of 14.8% from 2022 to 2030. This will be beneficial for Microsoft Corporation (NASDAQ:MSFT) because 40% of the company’s revenues are generated by the Microsoft Intelligent Cloud segment.

Here’s what Baron Funds said about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2022 investor letter:

“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.”

Microsoft Corporation (NASDAQ:MSFT) was held by 259 hedge funds at the end of Q2 2022.