Mario Gabelli’s 2022 Portfolio: 5 Tech Stock Picks

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 259

Mario Gabelli’s Stake Value: $46,602,000

Percentage of Gabelli’s Portfolio: 0.42%

Microsoft Corporation (NASDAQ:MSFT) is a Redmond, Washington-based diversified tech giant involved in the production of consumer electronics, personal computers, and software. The company also owns the renowned professional networking platform LinkedIn.

In a research note issued on June 10, Raimo Lenschow at Barclays gave Microsoft Corporation (NASDAQ:MSFT) stock an Overweight rating with a price target of $335. The analyst thinks that the investors are too focused on the outlook of Microsoft’s cloud computing service, Azure. Lenschow stated that there are other ongoing themes that can yield an upside potential on the stock. Microsoft Corporation (NASDAQ:MSFT) has a revenue base of $200 billion and intends to grow it by double digits moving forward. Earlier this month, the company provided a guidance update for Q4 FY22 and reduced its EPS and revenue estimates due to unfavorable foreign exchange rate movement during the quarter ending June 30.

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

“Microsoft’s business is firing on all cylinders and continue to enjoy an acceleration in their respective fundamentals because of the increase in digitization around the world. Nearly every company today is searching for ways to become more digital, and both Microsoft and Accenture are positioned to provide many of the solutions these companies seek. This inflection in fundamentals was not lost on the market, and each business’s stock performed exceptionally well in 2021. In fact, they represented two of the three top absolute performers for the Global Growth Portfolio last year. As a result, their respective stocks are currently more fully priced. As such, we lowered Microsoft from our largest position within the Portfolio. We maintain high conviction in Microsoft and plan to own it for many years, but recognize the increase in its prices.”

As of Q1 2022, 259 funds held a stake in Microsoft Corporation (NASDAQ:MSFT).

You can also take a peek at the 10 Value Stocks Hedge Funds Like in 2022 and 10 Value Stocks in Seth Klarman’s Latest Portfolio.

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