Mitch Rubin’s RiverPark Advisors Portfolio: Top 5 Stock Picks

2. Microsoft Corporation (NASDAQ:MSFT)

RiverPark Advisors’ Stake Value: $28,960,000

Percentage of RiverPark Advisors’ 13F Portfolio: 3.69%

Number of Hedge Fund Holders: 238

Billionaire Bill Gates’ Microsoft Corporation (NASDAQ:MSFT) is a top stock pick of Mitch Rubin, who owns 106,904 shares in the tech conglomerate, via RiverPark Advisors as of June this year, worth $28.96 million. Microsoft Corporation (NASDAQ:MSFT) represents 3.69% of Rubin’s stock portfolio for the second quarter. Microsoft Corporation (NASDAQ:MSFT) is a top US tech firm, whose products such as Microsoft Office, Microsoft Windows, and Internet Explorer, as well as consumer electronics and personal computers are used worldwide. 

As of the second quarter of 2021, 238 hedge funds out of the 873 elite funds monitored by Insider Monkey were bullish on Microsoft Corporation (NASDAQ:MSFT), down from 251 in the previous quarter. 

On October 26, the Q3 EPS for Microsoft Corporation (NASDAQ:MSFT) came in at $2.27, surpassing analysts’ consensus estimates by $0.19. Revenue for the quarter totaled $45.32 billion, exceeding estimates by $1.33 billion. 

Brad Zelnick from Deutsche Bank kept a Buy rating on Microsoft Corporation (NASDAQ:MSFT), with a $390 price target. He believes that Microsoft Corporation (NASDAQ:MSFT) is a solid software stock, and is positioned to benefit from the public cloud market, which will be valued at $127 billion in 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.”