Top 5 Stock Picks of Chase Coleman’s Tiger Global Management

2. Microsoft Corporation (NASDAQ:MSFT)

Tiger Global Management’s Stake Value: $2,852,745,000

Percentage of Tiger Global Management’s 13F Portfolio: 6.21%

Number of Hedge Fund Holders: 262

Microsoft Corporation (NASDAQ:MSFT) has consistently featured on Tiger Global Management’s 13F portfolio since Q4 2016. In the fourth quarter of 2021, the hedge fund held 8.4 million shares of the company, worth $2.85 billion, representing 6.21% of the total 13F securities. Microsoft Corporation (NASDAQ:MSFT) is one of the largest American multinational technology companies. 

On January 25, Microsoft Corporation (NASDAQ:MSFT) reported its earnings for the quarter ending December 2021. The company posted an EPS of $2.48, topping estimates by $0.16. Revenue over the period jumped 20.09% year-on-year to $51.73 billion, outperforming estimates by $938.45 million. 

Morgan Stanley analyst Keith Weiss has extended his Microsoft Corporation (NASDAQ:MSFT) forecast to five years to highlight what he sees as a “durable EPS growth story”. He maintained an Overweight rating and a $372 price target on Microsoft Corporation (NASDAQ:MSFT) shares on February 8. 

Elite hedge funds are increasingly bullish on Microsoft Corporation (NASDAQ:MSFT). In Q4 2021, 262 hedge funds held long positions in Microsoft Corporation (NASDAQ:MSFT), up from 250 funds in the quarter earlier. Fisher Asset Management owned a significant position in the company, with 26.8 million shares worth more than $9 billion.

Here is what Alger Spectra Fund has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q4 2021 investor letter:

“Class A shares of the Alger Spectra Fund underperformed the Russell 3000 Growth Index during the fourth quarter of 2021. Microsoft Corp. was among the top contributors to performance. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s CEO believes technology spending as a percent of GDP is likely to jump from about 5% today to 10% in a few years and that Microsoft will continue to take market share Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Microsoft Corporation (NASDAQ:MSFT) reported that Azure grew 50% in the past quarter. This high unit volume growth is a primary driver of the company’s higher share price, but 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.”