Microsoft Corp (MSFT-Q) Quote - Press Release (2024)

Motley Fool - Sun Apr 14, 1:50PM CDT

Dan Loeb is known as a mover and a shaker in the investing world. He founded the New York-based hedge fund Third Point in 1995. It now has roughly $11.5 billion in assets under management. Loeb's net worth stands at $3.3 billion, according to Forbes.

The activist investor did some moving and shaking in his hedge fund's portfolio in the fourth quarter of 2023. Loeb reduced his stakes in Amazon(NASDAQ: AMZN) and Microsoft(NASDAQ: MSFT). However, the billionaire investor bought another "Magnificent Seven" stock.

Taking profits

Loeb sold 210,000 shares of Microsoft in Q4. While this reduced Third Point's stake in the tech giant by over 9.4%, Microsoft remains the second-largest holding in the hedge fund's portfolio.

The billionaire investor has owned Microsoft off and on since 2006. He most recently initiated a new position in the fourth quarter of 2022, just in time to ride the generative AI wave started by OpenAI's launch of ChatGPT. Microsoft was a major beneficiary of this wave thanks to its partnership with OpenAI.

Third Point first owned Amazon in late 2019 and held the stock through the second quarter of 2022. Loeb didn't stay on the sidelines long with the e-commerce and cloud services leader. He initiated a new position in Amazon in the second quarter of 2023. Although he reduced Third Point's stake in the stock by nearly 10.3% in Q4 2023, Amazon still ranks as the hedge fund's third-largest holding.

Why did Loeb trim his positions in Amazon and Microsoft? The most likely reason is he wanted to take some profits. Both stocks delivered impressive gains last year.

A bigger bet on Meta

Although Loeb cooled somewhat on two Magnificent Seven stocks, he placed a bigger bet on Meta Platforms(NASDAQ: META). The hedge fund manager increased Third Point's stake in Meta by nearly 5.5% in Q4 2023. The $410.6 million value of the position made Meta the sixth-largest holding for Third Point at the end of 2023.

Loeb's history with Meta goes back to the second quarter of 2016 when he first bought the stock. He owned shares of the social media company for a little over two years before exiting the position. The activist investor again bought Meta stock in the second quarter of 2020 and maintained a position through 2021 Q4. Loeb went back to the well in the third quarter of 2023 with another new stake in Meta.

Like Amazon and Microsoft, Meta enjoyed a generative AI tailwind last year. However, I suspect that wasn't Loeb's primary reason for adding to his position in the stock. Instead, my hunch is that Loeb liked Meta's moves to increase its profitability.

Those efforts are paying off. Meta's earnings more than tripled year over year in 2023 Q4. Full-year profits jumped 69%.

Did Loeb make the right moves?

In one sense, Loeb went one for three with these Magnificent Seven transactions. Loeb's decision to increase Third Point's stake in Meta is already paying off. Meta stock has skyrocketed over 45% since the end of 2023. However, Amazon and Microsoft are also up by double-digit percentages year to date. Loeb could have made more money by holding his shares in both companies.

However, trimming the positions in Amazon and Microsoft could still have been the right call for Loeb. Both stocks make up significant percentages of Third Point's portfolio. You can't blame any investor for wanting to ensure their holdings aren't overly concentrated in a handful of stocks.

Over the long term, I think that Loeb -- and other investors -- will be well served by owning all three of these stocks. Amazon's and Microsoft's cloud businesses should continue to grow robustly thanks largely to AI. I like Meta's focus on business messaging and smart glasses with embedded AI assistants. I predict Amazon, Microsoft, and Meta will remain magnificent for a long time to come.

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Microsoft Corp (MSFT-Q) Quote - Press Release (2024)


What has Microsoft been in the news for recently? ›

Microsoft to invest $2.1B in Spain to expand AI and cloud infrastructure. Microsoft is expanding its AI and cloud infrastructure investments in Spain by $2.1 billion over the next two years, company President Brad Smith announced on Monday.

What is the earnings forecast for Microsoft? ›

Microsoft Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) also surpassed analyst estimates by 4.0%. Looking ahead, revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Software industry in the US.

What is the annual revenue of Microsoft? ›

According to Microsoft's latest financial reports the company's current revenue (TTM ) is $236.58 B. In 2022 the company made a revenue of $204.09 B an increase over the years 2021 revenue that were of $184.90 B. The revenue is the total amount of income that a company generates by the sale of goods or services.

How much is Microsoft's net worth? ›

Microsoft has a market cap or net worth of $3.02 trillion as of May 3, 2024. Its market cap has increased by 37.62% in one year.

What are the current issues Microsoft facing? ›

It is facing several trends and challenges including increased competition, increasing speed of business, rising client expectations, digital delivery of services, and the need to adapt to rapidly changing technological advances.

Is Microsoft still successful today? ›

As we make progress on these priorities, we delivered strong results in fiscal year 2023, including a record $211 billion in revenue and over $88 billion in operating income.

Is Microsoft a buy or sell right now? ›

Microsoft's analyst rating consensus is a Strong Buy. This is based on the ratings of 34 Wall Streets Analysts.

How much will Microsoft stock be worth in 5 years? ›

Long-Term Microsoft Stock Price Predictions
2025$ 497.4825.90%
2026$ 626.3558.52%
2027$ 788.6199.59%
2028$ 992.90151.29%
2 more rows

What is the msft target price? ›

Stock Price Target MSFT
Current Price$389.33

How much does Bill Gates own of Microsoft? ›

Institutional investors are the majority owners of Microsoft, accounting for almost 70% of outstanding shares. Former CEO Steve Ballmer owns a 4% stake in Microsoft, more than its founder Bill Gates, who holds a 1.3% stake. Vanguard and Blackrock are the two largest Microsoft's institutional investors.

Who now owns Microsoft? ›

The ownership structure of Microsoft (MSFT) stock is a mix of institutional, retail and individual investors. Approximately 43.38% of the company's stock is owned by Institutional Investors, 7.72% is owned by Insiders and 48.89% is owned by Public Companies and Individual Investors.

How much debt does Microsoft have? ›

Total debt on the balance sheet as of December 2023 : $88.37 B. According to Microsoft's latest financial reports the company's total debt is $88.37 B. A company's total debt is the sum of all current and non-current debts.

How many Microsoft employees are billionaires? ›

Since Its IPO, Microsoft Has Created 8 Billionaires and an Estimated 12,000 Millionaire Employees. The significance of 1986 in Microsoft's history is monumental, marking the year the tech giant went public, a pivotal moment that laid the foundation for its remarkable growth journey.

How rich is the CEO of Microsoft? ›

The estimated net worth of Satya Nadella is at least $319 Million dollars as of 2024-05-02. Satya Nadella is the CEO of Microsoft Corp and owns about 801,331 shares of Microsoft Corp (MSFT) stock worth over $319 Million. Details can be seen in Satya Nadella's Latest Holdings Summary section.

Is Microsoft having issues today? ›

Service Status. We're all good! Everything is up and running.

What does Microsoft do now? ›

We develop and market software, services, and hardware that deliver new opportunities, greater convenience, and enhanced value to people's lives. We do business worldwide and have offices in more than 100 countries.

What is the financial situation of Microsoft? ›

Microsoft Corporation reported earnings results for the third quarter and nine months ended March 31, 2024. For the third quarter, the company reported revenue was USD 61,858 million compared to USD 52,857 million a year ago. Net income was USD 21,939 million compared to USD 18,299 million a year ago.

What has Microsoft done for society? ›

Accessibility Initiatives: Microsoft has invested in accessibility features in its products, ensuring that technology is inclusive and accessible to people with disabilities. This commitment aligns with the company's mission to empower every person and organization on the planet.

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