Forget AMC and Gamestop: 5 New Stocks Reddit’s WallStreetBets Is Buying

1. Microsoft Corp (NASDAQ:MSFT)

Number of Hedge Fund Investors: 306

Reddit’s WallStreetBets is generally bullish on Microsoft Corp (NASDAQ:MSFT) which has been on an absolute tear this year, thanks to the AI boom that seems to have no end in sight. Many comments in Reddit WallStreetBets also talk about secular growth catalysts for Microsoft Corp (NASDAQ:MSFT), including Microsoft Corp’s (NASDAQ:MSFT) huge penetration in the enterprise space, Cloud computing and productivity.

Recently, a comment on Microsoft Corp (NASDAQ:MSFT) discussion thread in Reddit WSB said:

“Microsoft makes up 80% of end user computing, most if not all of the office applications used, and a huge chunk of (forced) cloud computing. They’re not going anywhere, ever.”

Microsoft Corp (NASDAQ:MSFT) was the most popular stock among the 910 hedge funds tracked by Insider Monkey as of the end of the third quarter of 2023.

Here is what White Brook Capital has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2023 investor letter:

“The magnificent seven, that underpin the S&P 500 performance, which includes Microsoft Corporation (NASDAQ:MSFT), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”

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