Microsoft Corporation (MSFT) Share Price Declined Despite High Unit Volume Growth

Alger Capital, an investment management company, released its “Alger Spectra Fund” second quarter investor letter. A copy of the same can be downloaded here. Class A shares of the fund in the second quarter underperformed the Russell 3000 Growth Index. Communication services and material sectors significantly contributed to the fund’s relative performance, while Consumer discretionary and energy sectors were the major performance detractors. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter, Alger Capital discussed stocks like Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) is a multinational technology company headquartered in Redmond, Washington, and has a market capitalization of $1.95 trillion. On August 31, 2022, Microsoft Corporation (NASDAQ:MSFT) stock closed at $261.47 per share. One-month return of Microsoft Corporation (NASDAQ:MSFT) was -7.82% and its shares lost 13.18% of their value over the last 52 weeks.

Here is what Alger Capital specifically said about Microsoft Corporation (NASDAQ:MSFT):

“Microsoft Corporation (NASDAQ:MSFT) is a positive dynamic change beneficiary of corporate America’s transformative digitization. during a previous earnings call, Microsoft’s CEO estimated that technology spending as a percent of GDP may increase from about 5% today to 10% in 10 years. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share and its revenues increased 49% during the first three months of this year as the company’s revenue growth approached 20%. Microsoft’s share price declined despite its high unit volume growth as the broad equity market was down due to higher interest rates and slowing economic growth.”

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Microsoft Corporation (NASDAQ:MSFT) is in 2nd position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 258 hedge fund portfolios held Microsoft Corporation (NASDAQ:MSFT) at the end of the second quarter which was 259 in the previous quarter.

We discussed Microsoft Corporation (NASDAQ:MSFT) in another article and shared the list of ARK stocks to buy now. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

Disclosure: None. This article is originally published at Insider Monkey.