- My main idea is the action of Microsoft Corporation (NASDAQ: MSFT)
- Market capitalization is over $ 1 trillion
- Assessment: AAA (S&P and Moody’s)
- Competitors: Apple and Amazon
- Reasons why MSFT will outperform its competitors and emerge as one of the best investments
In 2019, Microsoft Corporation shares rose almost 30% with impressive profits. The company has a strong and highly secure balance sheet and attractive valuations. At the end of 2019, Microsoft had $ 134.3 billion in cash, one of the largest of these stocks among all U.S. companies. This is the reason why MSFT is among the best stock selections in the S&P 500, NASDAQ 100 and Dow Jones and given the prestigious ratings “AAA” and “Aaa”. MSFT investors also regularly receive dividends.
To screw up said in his daily “Mad money show“-Tens of millions of workers are stranded at home, implying that Microsoft is” a huge beneficiary of the blockages, “he added, the stock should not only be bought by investors at current levels, but it should also be labeled “The best tech stock in this market”
We are in 2020, and we are still using Microsoft office tools, it also has LinkedIn, Skype, Xbox, Azure Bing, MSN, GitHub, Nokia Business Mobile, Minecraft. MSFT creates continuous cash flow revenue from its subscription activities. Microsoft is still a young player in the cloud market compared to Amazon Web Services, but it is closing the gap slowly and methodically. Winning the contract recently with the Pentagon, which was to go to Amazon’s web services, underscores its growing reputation in the industry.
Microsoft targets the world, not just the United States. MSFT aims to close new business for its cloud computing services and generate recurring revenues from its subscription based industries worldwide and provide stability to investors in the context of the COVID-19 crisis. The above is supported by the latest news; when Microsoft recently revealed that cloud activity Azure saw a three-digit weekly usage peak in socially distanced areas, as 44 million users recorded more than 900 million meetings and call minutes.
Therefore, the companies that can drive cloud usage will be the ones that emerge victorious. With such a kickoff in stocks, some investors may think that stocks cannot go higher. But with a successful cloud business, a new Windows 10 O.S. aligned for this year, and perceived solidity in a period of growing uncertainty, Microsoft Corporation shares are guaranteed to rise even higher.
Microsoft has transformed itself from the PC era software company into one of the world leaders cloud computing and Artificial intelligence.
If 100 Microsoft Corporation stocks had been invested in April 2009, its value after ten years would currently yield almost 700% of total return on profits. As technology evolves, MSFT continues to be one of the most stable technology companies in the world. Serving an international audience with the most advanced cloud computing and artificial intelligence infrastructure, it always offers new innovative technological products and services for the future. Microsoft is constantly acquiring new companies with great potential. Just recently he bought PromoteIQ, a New York-based company that helps big brands and sellers diversify their e-commerce offerings.
Compete with rivals
For many shareholders, Microsoft Corporation is one of the best stocks to invest in and keep forever. Many Wall Street fund managers and analysts are in “buy” mode for MSFT, while the valuation is fair.
With the United States in an economic war with China and fears of recession resonating in the markets, tech capitalists could be forgiven if they look for places to hide. If we see the rivals of MSFT, Apple is not an option now. The trade war with China is hampering its ability to compete with Samsung. If a recession occurs, customers may not be willing to spend $ 1,100 on a new mobile phone.
Alphabet’s, Google, has his problems. Lawmakers and regulators around the world are equipped to fine and otherwise penalize the Internet giant. same Amazon could be in danger in an economic decline. If consumer spending slows, sales could fall for the e-commerce giant. And then there is Facebook; It is in the most unpredictable situation of the group. Regulators, consumer groups, legislators and even 2020 administrative candidates are calling for its dissolution.
Action Microsoft Corporation: Conclusion
That leaves Microsoft, a company which, not so long ago, was classified as extinct. The stock has seen a steady increase in recent weeks amid the long-standing trade war. The company also announced double-digit growth with net profit for fiscal year 2019 up 21.6% year-over-year and sales up more than 14%. Most of the growth comes from its cloud business, which competes directly with Amazon Web Services and Google. Profits from productivity and business processes from Microsoft and smart cloud units amounted to $ 22 billion in the second quarter, compared to $ 11.1 billion for its IT group. Investors who are looking for a position in a technology security but cannot bear the risk may flock to Microsoft, driving up prices.
The above positive factors do not fully isolate Microsoft – or any company – from a recession. But its dominant position on the market, its solid balance sheet and its easy access to capital offer buffers in difficult times and therefore the best choice for investing in the current market.
Disclosure: no position