Microsoft stock on Monday registered a 5% increase in the market. The global computer software company is well positioned to survive the coronavirus storm better than many other stocks.
Global computer software company Microsoft Corporation (NASDAQ: MSFT) posted a 5% market increase on Monday. Since its slide during the liquidation of the coronavirus, the title of the company has not plunged into red in the first quarter. However, the company’s stock is trading 17% below its level on February 17.
In the firm’s second quarter earnings report released in January, Microsoft said it was earning $ 1.51 per share on revenue of $ 36.91 billion, which was the highest according to analyst expectations of 1 , $ 32 per share and revenues of $ 35.67 billion.
However, in the Q3 2020 guidance update, released in late February in response to the coronavirus pandemic, it revealed that it would not meet its revenue forecast for its more personal IT segment due to obstacles to its supply chain in China.
The company said in a statement:
“Although we see strong Windows demand in line with our expectations, the supply chain returns to normal operation at a slower pace than expected during our Q2 earnings call.”
“Therefore, for the third quarter of fiscal 2020, we do not expect to meet our guidelines for the more personal computing industry, as Windows OEM and Surface are more negatively affected than expected.”
However, there are certain headwinds for Microsoft that will help investors put a slight setback in the rearview mirror.
Microsoft Stock will overcome the downside of coronavirus
Sources say Microsoft Stock is well positioned to survive the coronavirus storm than many other stocks on the wall. With a market capitalization of more than $ 1 trillion, $ 137 billion in cash and less than $ 70 billion in debt, Microsoft has the capital to weather a prolonged economic downturn while continuing to take over companies like Affirmed for l help develop in the cloud.
The team platform of the company will also be essential to the success of the company in the coming months with its share a dividend of 1.3% for investors. Also last year, Microsoft stock rose almost 30% with impressive profits.
The company has a very secure solid balance sheet and attractive valuations with $ 134.3 billion in cash at the end of 2019, one of the largest of these stocks among all U.S. companies. For this reason, Microsoft stocks are among the best stock picks in the S&P 500, Nasdaq 100 and Dow Jones and have received the prestigious “AAA” and “Aaa” ratings.
There were reports that a bear market was triggered on Friday, according to the employment report; Microsoft’s stock was down about 1.5% on April 3, however, the company’s title at the time of publication was up about 5.31% to $ 161.44.
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