Microsoft Stock vs. Meta Platforms Stock: Billionaires Are Buying One and Selling the Other

Wall Street is very bullish on Microsoft (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META). Both stocks have a consensus rating of buy, and the median target prices imply at least 10% upside as of Dec. 27. However, two hedge fund billionaires sold Microsoft and bought Meta Platforms in the third quarter:Investors should not copy those trades without due diligence. Both hedge funds underperformed the S&P 500 (SNPINDEX: ^GSPC) during the last three years. And the trades were made in the third quarter, which ended three months ago. That said, Microsoft and Meta Platforms do warrant further consideration, given that artificial intelligence could supercharge their profits in the future.Microsoft reported solid financial results for the first quarter of fiscal 2025, which ended in September, beating estimates on the top and bottom lines. Revenue rose 16% to $65 billion on strong momentum in enterprise software and cloud services driven by demand for artificial intelligence (AI) products. Meanwhile, generally accepted accounting principles (GAAP) net income increased 10% to $3.30. But the stock declined following the report for a few reasons.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool