Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Is It Too Late To Invest In Microsoft Stock? 

By Investing.com (Haris Anwar/Investing.com)Stock MarketsApr 05, 2021 08:57AM ET
www.investing.com/analysis/is-it-too-late-to-invest-in-microsoft-stock-200571213
Is It Too Late To Invest In Microsoft Stock? 
By Investing.com (Haris Anwar/Investing.com)   |  Apr 05, 2021 08:57AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The past few weeks have been exciting for Microsoft (NASDAQ:MSFT) investors. The global technology giant has been busy using its massive pile of cash to position itself for future growth, at a time when the pandemic-driven rally in tech stocks is showing signs of peaking.

The Redmond, Washington-based software behemoth’s latest moves prove that the company is an ideal pick for long-term investors looking for both capital growth and an increasing income stream from the company's dividend which currently yields 0.95%.

After buying the parent company of the popular video-game publisher Bethesda Softworks earlier this year, Microsoft is reportedly in exclusive talks to acquire messaging platform Discord Inc. for $10 billion or more.

Purchasing the six-year-old startup will help Microsoft boost its video game business which includes the successful Xbox platform, and its social-networking footprint. If concluded successfully, the Discord deal would be Microsoft’s largest acquisition since its $26.6 billion purchase of LinkedIn in 2016.

With this acquisition activity, the company is also expanding its role as a major government supplier. The company told investors in a blog post on Wednesday that it will build custom augmented-reality headsets for the U.S. Army in a deal that could be worth up to $22 billion.

The devices will be based on Microsoft’s HoloLens headset which debuted in 2016. More than 120,000 units of the custom gear will be delivered over a 10-year period, supported by Microsoft’s Azure cloud-computing service.

The "Netflix of Gaming”

As a result of Microsoft’s growth-oriented moves, analysts are forecasting additional gains for its share price after a more than 35% surge in 2020.

MSFT Weekly TTM
MSFT Weekly TTM

All 23 analysts covering Microsoft have a buy rating on the stock, according to Tipranks. Their consensus, one-year price target is $279, a 15% boost from its Thursday close of $242.35.

In a note to investors last week, Morgan Stanley assigned an “overweight” rating to MSFT with a price target of $290 a share.

According to the note, Microsoft’s recent push to strengthen its community and content portfolios position the company to enable it to take a major share of the gaming market. With some 18 million monthly subscribers to its Game Pass service, Microsoft is on the way to becoming the “Netflix of gaming,” the note said.

Microsoft’s gaming expansion comes after a strong year which produced stellar growth for its Azure internet-based cloud computing services. Growth in that division jumped 50% in the most recent quarter as corporate clients accelerated a shift to the cloud during the pandemic, where they can store data and run applications via the internet. For more than three years running, revenue from Azure has almost doubled each quarter.

Bottom Line

MSFT is continuing to expand its market share, reaching more deeply into cloud and gaming. At the same time it's maintaining its leading position with legacy software products such as Windows and Office.

This durable advantage will help the company achieve sustained, double-digit growth in revenue, earnings per share and free cash flow, making it a reliable tech stock to own now and over the longer term.

Is It Too Late To Invest In Microsoft Stock? 
 

Related Articles

Is It Too Late To Invest In Microsoft Stock? 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (8)
Erikas Ivan
Erikas Ivan Apr 08, 2021 10:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Come on, it's a long-term investment.
Joseph Obrzut
jzut Apr 05, 2021 4:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Done that in April of 2016. 50 @ 52.15. A core holding. Yes. Would like to see a split.
George Pichurov
George Pichurov Apr 05, 2021 1:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"Not too late", says Bidden the joe
Kevin McCarthy
Kevin McCarthy Apr 05, 2021 1:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
praying for a stock split. MSFT with or without one will double in the next two years.
KyK Research
KyK Research Apr 05, 2021 1:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Really poor headline. MSFT will always be a good long term investment in our lifetimes.
Jeremie Fraser
Jeremie Fraser Apr 05, 2021 1:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
People been asking this question for years now.,, Answer is that MSFT has always been a great investment and will always be
Matt Novakovich
Matt Novakovich Apr 05, 2021 9:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
depends if it can still go higher
Mert Karaata
Mert Karaata Apr 05, 2021 4:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email