Microsoft is poised for sustainable growth with billionaire investors increasing their stakes

From Nasdaq: 2024-07-15 19:54:36

its sustainable growth narrative and creating value for long-term investors. Microsoft is expected to unveil its fiscal Q4 earnings results after the market closes on Tuesday, July 26. Analysts tracking Microsoft expect its EPS for the quarter to surge 14.7% year over year to $1.90.Overall, the tech giant’s EPS is forecasted to rise to $9.41 in fiscal 2024, increasing by 15.2% yearly, and climbing by 11.3% to $10.49 in fiscal 2025.With such a compelling growth story, it’s no wonder that Microsoft has caught the eye of several billionaire investors. For instance, Steven Cohen, billionaire investor and owner of Point72 Asset Management, made a 154% increase in his investment during Q1, purchasing an extra 14,904,430 shares, taking his total stake in Microsoft to 24.45 million shares. This investment now represents a significant 9.1% of his entire portfolio.Valiant billionaire Ray Dalio, founder of Bridgewater Associates, has held a steady stake in MSFT since the fourth quarter of 2018. Dalio set up his position with 6,402 shares, and has maintained a stake around that level since then. On top of that, it’s clear that Microsoft boasts significant credibility on Wall Street, given its strong “Strong Buy” consensus rating. Encompassing 30 analysts, 26 rate MSFT a “Strong Buy,” with three suggesting a “Moderate Buy,” and one recommending “Hold.” Moreover, the average analyst price target stands at $294.93, suggesting an upside of 11.9% from current levels. Equally as compelling, the stock’s highest price target of $321 indicates an impressive 21.2% upside possible in the next 12 months.



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