Amit Nitin Doshi’s Harbor Spring Capital Portfolio: Top 5 Stock Picks

2. Microsoft Corporation (NASDAQ:MSFT)

Harbor Spring Capital’s Stake Value: $47,785,000

Percentage of Harbor Spring Capital’s 13F Portfolio: 3.36%

Number of Hedge Fund Holders: 238

Microsoft Corporation (NASDAQ:MSFT) is one of the Big Five US tech companies, known for its computer software, operating systems, and relevant consumer electronics. 

On October 26, Microsoft Corporation (NASDAQ:MSFT) reported Q3 earnings. EPS for Q3 came in at $2.27, beating estimates by $0.19. Revenue for the period totaled $45.32 billion, surpassing estimates by $1.33 billion. Deutsche Bank analyst Brad Zelnick on November 1 initiated coverage of Microsoft Corporation (NASDAQ:MSFT) with a Buy rating and a $390 price target. He believes that Microsoft Corporation (NASDAQ:MSFT) can tap into the public cloud market effectively, which is valued at $127 billion in 2021. 

Microsoft Corporation (NASDAQ:MSFT) is one of the most sought after stocks by the smart money, with 238 hedge funds being bullish on the stock as of the second quarter of 2021. 

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

“Microsoft Corporation was among the top contributors to performance during the third quarter. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Microsoft reported that Azure grew 51% in the second quarter. This high unit volume growth is a primary driver of the company’s higher share price, but the company’s strong operating execution has enabled margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases.”