Microsoft stock – Sempati Kopek Oteli http://www.sempatikopekoteli.com/ Wed, 10 Nov 2021 07:13:28 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://www.sempatikopekoteli.com/wp-content/uploads/2021/11/icon-30-120x120.png Microsoft stock – Sempati Kopek Oteli http://www.sempatikopekoteli.com/ 32 32 Is It Too Late To Buy Microsoft Stock? http://www.sempatikopekoteli.com/is-it-too-late-to-buy-microsoft-stock/ http://www.sempatikopekoteli.com/is-it-too-late-to-buy-microsoft-stock/#respond Mon, 01 Nov 2021 11:25:00 +0000 http://www.sempatikopekoteli.com/is-it-too-late-to-buy-microsoft-stock/ Microsoft (NASDAQ: MSFT) started fiscal 2022 by exceeding profit and revenue estimates. This pushed up its shares the following trading day, and Microsoft shares are now selling at record highs, hitting a market cap of $ 2.5 trillion. This leaves Microsoft and Apple fight to claim the largest market capitalization in the world. Knowing this, […]]]>

Microsoft (NASDAQ: MSFT) started fiscal 2022 by exceeding profit and revenue estimates. This pushed up its shares the following trading day, and Microsoft shares are now selling at record highs, hitting a market cap of $ 2.5 trillion.

This leaves Microsoft and Apple fight to claim the largest market capitalization in the world. Knowing this, investors might naturally start to wonder if it’s too late to buy this tech giant.

Image source: Getty Images.

Microsoft’s massive growth

Microsoft is not a cheap stock, the price / earnings (P / E) ratio stands at 37. Although far from an all-time high, it has risen significantly from the multiple of 15 earnings where it was when Satya Nadella became CEO in 2014. Moreover, while it sells for less than its cloud competitor Amazon (NASDAQ: AMZN), which supports a P / E ratio of around 60, it has become more expensive than Apple and Alphabet, both of which sell for around 30 times the profit.

Additionally, Microsoft generated $ 45.3 billion in revenue in its first quarter of fiscal 2022. This is a 22% increase from the same quarter last year. Its generally accepted accounting principles (GAAP) profits of $ 20.5 billion jumped 49% from levels a year ago. As its cost of revenues jumped 24%, slower growth in operating expenses and a $ 3.3 billion tax benefit from the transfer of intangible properties helped boost profits. Without this benefit, earnings would have increased by 24%. Revenue and profits helped the company generate $ 18.7 billion in free cash flow, 30% more than the quarter last year.

Similar successes prompted investors to bid higher on Microsoft shares during Nadella’s tenure. Since taking office as CEO, Microsoft stock has risen nearly 800%. Over the past year, it has jumped almost 55%.

MSFT chart

MSFT given by YCharts

Why Microsoft could continue to progress

Much of its success relies on the company’s success in the cloud. Grand View Research, which estimated the market size to be around $ 369 billion in 2021, predicts 19% compound annual growth for the industry through 2028. Microsoft has skillfully capitalized on this market. Its smart cloud division increased revenue to $ 17 billion, a 31% year-over-year gain. Microsoft remains the second player in cloud infrastructure, behind Amazon, a pioneer in the cloud industry. Amazon claims about 32% of the market, compared to 19% for Microsoft’s Azure, according to ParkMyCloud (a Software-as-a-Service IT management platform).

Yet the cloud has become a significant force in many areas of the business. Its productivity and process division, which transformed Office into a cloud-based product through Microsoft 365, had $ 15 billion in revenue. This represents an increase of 22% over the past 12 months. Even the relative laggard among divisions, Plus Personal Computing, increased revenue by 12% in that period to $ 13 billion. Nadella added when announcing first quarter 2022 results that the pandemic has caused a structural shift in demand for PCs, which should bode well for sales of Microsoft’s Windows 11 operating system.

In addition, investors will be hard pressed to find a stronger balance sheet than Microsoft’s. The company has a cash position of just under $ 130.6 billion. This means that he could pay off his $ 53.3 billion debt and still have considerable liquidity to make the necessary investments. This cash flow also enabled Microsoft to return nearly $ 10.9 billion to shareholders in the form of dividends, up 14% from the quarter last year. The annual payout of $ 2.48 only earns around 0.8%, a level that likely won’t entice investors to buy Microsoft. But, given the free cash flow generated during the quarter, the payment remains affordable for the business.

Investors still have time

Despite a record stock price and massive market cap, investors should consider Microsoft. True, Amazon continues to dominate the cloud market. Nevertheless, Microsoft has become its most formidable cloud competitor. Additionally, with a relative return of Windows and all divisions increasing revenue at double-digit rates, profit levels and the share price may continue to rise over time.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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Microsoft Stock Expected To Hit $ 400 As It Becomes A ‘Cloud Behemoth’, Analyst Says http://www.sempatikopekoteli.com/microsoft-stock-expected-to-hit-400-as-it-becomes-a-cloud-behemoth-analyst-says/ http://www.sempatikopekoteli.com/microsoft-stock-expected-to-hit-400-as-it-becomes-a-cloud-behemoth-analyst-says/#respond Wed, 27 Oct 2021 14:16:08 +0000 http://www.sempatikopekoteli.com/microsoft-stock-expected-to-hit-400-as-it-becomes-a-cloud-behemoth-analyst-says/ Microsoft (MSFT) released its first quarter 2022 results on Tuesday, beating Wall Street expectations as cloud revenue jumped 36% year-over-year. And according to at least one analyst, it could start a fire under the company’s shares. “I think it’s just more fuel in the engine to drive this stock up,” Wedbush analyst Dan Ives told […]]]>

Microsoft (MSFT) released its first quarter 2022 results on Tuesday, beating Wall Street expectations as cloud revenue jumped 36% year-over-year. And according to at least one analyst, it could start a fire under the company’s shares.

“I think it’s just more fuel in the engine to drive this stock up,” Wedbush analyst Dan Ives told Yahoo Finance Live. “It just shows [Microsoft CEO Satya Nadella] in this cloud arms race continues to gain share.

Microsoft, which saw its stock jump 39% since the start of the year to $ 310.11 per share on Tuesday, is expected to cross the $ 400 mark, according to Ives. The stock was up just over 3% on Wednesday morning, trading at around $ 319 per share.

For the quarter, Microsoft’s cloud services generated $ 20.7 billion in revenue. The company is second in terms of cloud market share behind Amazon (AMZN) and ahead of Google (GOOG, GOOGL) and IBM (IBM).

The enterprise cloud is still in its infancy and spending is expected to continue to rise as more businesses move away from their own on-premises servers and lease cloud computing capacity. And the increased shift to remote work has only added to that. Additionally, Ives also doesn’t think a return to office work for employees will hurt Microsoft’s cloud business.

“Go back the last six months, enemies will say it will be a decelerating cloud, due to a COVID surge, quite the opposite,” Ives said.

Microsoft, of course, isn’t just seeing growth in its cloud business. It also continues to do well in terms of sales of its PC business.

The company, which launched its new Windows 11 operating system on October 5, increased its more personal computing segment by 15% year-over-year. But the current shortage of chips could bite in the future, as chips for desktops and laptops become scarce and more expensive.

The chip shortage has also piqued Microsoft’s gaming business, which falls under the More Personal Computing segment. The company’s Xbox Series X and Series S consoles are still incredibly hard to find almost a year after they hit the market. And third-party sellers charge nearly double their starting prices of $ 499 and $ 299, respectively.

For Ives, however, it’s just “noise” beside the larger cloud story at Microsoft.

“It’s all about the transformation of the cloud,” he said. “They have become a cloud giant at Microsoft. This is a $ 2 trillion market that is still in its third round. When doing a cloud transformation, I think that’s how you get a stock with a four in front.

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Microsoft stock forecast and earnings http://www.sempatikopekoteli.com/microsoft-stock-forecast-and-earnings/ http://www.sempatikopekoteli.com/microsoft-stock-forecast-and-earnings/#respond Tue, 26 Oct 2021 16:17:36 +0000 http://www.sempatikopekoteli.com/microsoft-stock-forecast-and-earnings/ To start with a Microsoft stock forecast, most people usually think of their Windows computers, the Microsoft Office suite, or maybe the Internet Explorer browser. While these are certainly big parts of Microsoft’s business, I’m not sure most people realize how huge Microsoft’s business is. Once you start listing the things Microsoft owns, the list […]]]>

To start with a Microsoft stock forecast, most people usually think of their Windows computers, the Microsoft Office suite, or maybe the Internet Explorer browser. While these are certainly big parts of Microsoft’s business, I’m not sure most people realize how huge Microsoft’s business is. Once you start listing the things Microsoft owns, the list seems to continue. For example, Microsoft owns:

  1. LinkedIn
  2. Xbox
  3. Azure cloud computing
  4. Skype (which has since been integrated with Microsoft Teams)
  5. Bing
  6. Github
  7. Hololens
  8. Microsoft Surface
  9. Microsoft Office 365

Almost all of these industries could easily be self-sufficient and competitive within their industries. For example, LinkedIn is one of the biggest social media sites on the Internet. Xbox is one of the most popular gaming systems. Hololens is at the forefront of virtual and augmented reality.

Here are some VR stocks and video game stocks to consider investing in as well.

No wonder Microsoft has such a high standard mission declaration. Microsoft’s mission is to “empower every person and organization on the planet to do more.Talk about setting the bar high (as well as somewhat vague).

To its credit, Microsoft has definitely produced results to defend statements like this. In 2021, Microsoft’s technology aid billions of people around the world. He helped NASA conduct research on Mars. This helped Anheuser Busch use real-time information to brew beer more efficiently. He has also helped hundreds of businesses bypass the catastrophic blockade of the Suez Canal. That doesn’t even take into account the billions of people who use its hardware or office suite.

Microsoft is currently one of the few trillion dollar companies in the world. So does that mean Microsoft stock is one of the few must-have stocks in your portfolio?

Let’s take a look at a Microsoft stock forecast and find out.

Microsoft Stock Forecasts

Microsoft is expected to announce the third quarter results after market close today October 26, 2021.

To note: I am not a financial advisor and simply offer my own research and commentary. Please exercise due diligence before making any investment decisions.

What is Microsoft doing?

As mentioned, Microsoft is involved in a ton of different businesses. Microsoft is best described as a technology company that provides software, consumer electronics, personal computers, and related services. It employs 181,000 people, most of whom live in the United States.

Here are the different industries that Microsoft described in its most recent Annual Report:

  • Applications and infrastructures
  • Data and artificial intelligence
  • development tools
  • Power platform
  • Commercial applications
  • LinkedIn
  • Modern work
  • Security
  • Games

A thorough analysis of all of Microsoft’s business could possibly fill a book. In fact, Microsoft has so many new projects going on that it took 16 page report (single spacing) just to announce them. One of the reasons Microsoft has so many new projects is that it spent about $ 20 billion in research and development each year.

For reference, Uber (which is not a small business) generated total revenue of around $ 10 billion in 2020. This means Microsoft casually spends double Uber’s total revenue. in 2020 only for research. This number was second for software companies, only behind Google.

Microsoft’s recent announcements

A full list of recent announcements for this Microsoft stock forecast can take days to read. For this reason, I have drawn some of the main highlights:

  • Metaverse – Microsoft is considered one of the major companies contributing to the metaverse. If you haven’t heard of the Metaverse, it’s a future version of the internet. The metaverse will combine virtual reality, augmented reality and digital worlds. For more on this, check out these Metaverse Actions.
  • LinkedIn leaves China – Microsoft is pulling LinkedIn from China after struggling to comply with the Chinese government.
  • Microsoft for startups – A startup incubator under construction. This project will seek to give more opportunities to entrepreneurs.

With so many projects going on, let’s see how much money Microsoft is actually making.

MSFT Share Price Forecast

In fiscal 2021, Microsoft reported revenue of $ 168 billion, an increase of 18% from 2020. Its revenue has grown on average by about 13% per year over the past five years. last years.

In 2021, Microsoft reported $ 61 billion in net income. This was an increase of almost 40% from 2020. If he advertised a one-time bonus for his employees using those profits alone, the 181,000 employees would receive a check for $ 337,000.

Microsoft also announced a net profit margin of 36% in 2021. That’s incredibly impressive for a company of its size. Additionally, Microsoft’s and LinkedIn’s security activities both exceeded $ 10 billion in annual revenue in 2021.

Microsoft stocks reacted appropriately to these numbers. Its stock has grown 42% so far in 2021 and has grown by over 400% in the past five years. Since 2010, Microsoft stock is up about 900%.

With that said, let’s take a look at the most important question: should you buy Microsoft stock?

Should I buy Microsoft shares? Potential Benefits

It’s pretty clear that Microsoft’s stock has been unstoppable over the past few years. The company has been a money-printing machine that made more profit in fiscal 2021 than most companies will ever make. Its activity is also so diverse that the management team must have difficulty finding new businesses. On the Robinhood trading app, Microsoft has a “buy” rating from 95% of investors.

The chart of Microsoft stocks over the past five years is also everything an investor could dream of. Microsoft stock has grown just over 400% in five years, or 80% per year. Just a reminder that the average annual return of the stock market is around 10%. To see how investments can grow, check out our free investment calculator.

Even if Microsoft stock continues to reach half its success over the next five years, it could quadruple the market’s return. However, we know that a stock’s past results are not always a good predictor of its future performance.

That said, let’s take a look at a few issues that could go wrong for Microsoft in the future. The risk is important to factor in this Microsoft stock forecast.

Should I buy Microsoft shares? Potential drawbacks

Whenever a business (or action) is so successful, it means that expectations tend to be very high. In the future, anything less than stellar will disappoint investors. For example, Microsoft increased its net profit by 40% in fiscal year 2021. Due to its size, conventional wisdom says that it will not be able to do this consistently in 2022, 2023, etc. .

Failure to meet Wall Street’s sky-high expectations could result in a short-term correction in the share price. Investors who buy Microsoft shares are now at risk of buying just ahead of a possible correction. That said, it’s unclear when (or if) this will happen.

Also, we cannot talk about Microsoft without talking about the will of Congress to regulate big tech. On the one hand, no significant regulations on major technologies have ever been applied. However, the threat of regulation will always be a threat to investors. A piece of recent legislation could prohibit companies from promoting their own products in their own marketplaces. It would be more damaging for tech companies that own markets like Amazon, Facebook, and Google. However, it is not clear what kind of legislation might be proposed in the future.

In the worst case, Microsoft could be seen as monopolistic. It could then be forced to sell certain sectors of activity, which could adversely affect its results. Even the announcement of regulations could result in a massive sell-off of Microsoft shares in the short term.

Hope you have found these Microsoft Stock Predictions helpful in deciding whether or not to invest in Microsoft stocks. As usual, all investment decisions should be based on your own due diligence and tolerance for risk.

If you are looking for even better investment opportunities, sign up for Freedom through wealth below. It’s a free email newsletter full of tips and tricks. You will hear directly from investment experts.


About Teddy Stavetski

A graduate of the University of Miami, Teddy studied marketing and finance while playing for four years on the soccer team. He has always had a passion for business and used his experience from a few personal projects to become one of the top rated business copywriters on Fiverr.com. When he’s not hammering out words on paper, you may find him hammering notes on the piano or walking to a random place.


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Microsoft Stock Price Forecast October 2021 – Time to Buy MSFT Stocks? http://www.sempatikopekoteli.com/microsoft-stock-price-forecast-october-2021-time-to-buy-msft-stocks/ http://www.sempatikopekoteli.com/microsoft-stock-price-forecast-october-2021-time-to-buy-msft-stocks/#respond Mon, 25 Oct 2021 14:57:09 +0000 http://www.sempatikopekoteli.com/microsoft-stock-price-forecast-october-2021-time-to-buy-msft-stocks/ As tech names hit their 2021 highs. Microsoft (MSFT) stock has been strong and hit a new high on Friday. The stock rose more than 42% for the year and its market capitalization is $ 2.32 trillion, which is only a little short of Apple, the world’s largest company in terms market capitalization. Meanwhile, investors […]]]>

As tech names hit their 2021 highs. Microsoft (MSFT) stock has been strong and hit a new high on Friday. The stock rose more than 42% for the year and its market capitalization is $ 2.32 trillion, which is only a little short of Apple, the world’s largest company in terms market capitalization.

Meanwhile, investors are wondering what the outlook is for Microsoft stock after the steep rise in 2021. Will the stock continue to rise or could there be a correction?

Technical analysis of MSFT shares

MSFT stock looks bullish on the charts. The stock is trading above all key moving averages as it is trading near all-time highs. Earlier this month, the stock broke the 50-day SMA (simple moving average). It has since been in an uptrend and has hit higher highs. The 12.26 MACD (moving average convergence difference) also gives a buy signal for Microsoft stock. The 14-day RSI (Relative Strength Index), which currently sits at 64.4, is a neutral indicator.

Third Quarter Results Season

Microsoft would release its first quarter tax results tomorrow. Notably, a third of the components of the S&P 500 and the Dow Jones publish their quarterly earnings this week. Besides Microsoft, other tech giants like Apple, Amazon, Alphabet and Facebook have also scheduled their earnings for this week. The earnings season has been quite good so far and the majority of companies have posted better than expected earnings. However, the markets would be particularly interested in the revenues of the tech giants. Not only their action on prices, but the profits of the tech giants also have an impact on the markets at large.

Microsoft earnings

Analysts polled by TIKR expect Microsoft to report revenue of $ 43.9 billion in the quarter, an increase of 18.4% year-on-year. The company’s profit growth is expected to drop to around 13.5% over the next two quarters. MSFT’s adjusted EPS is expected to increase 14.2% to $ 2.08 in the quarter.

Meanwhile, the global chip shortage situation could also impact Microsoft’s profits. PC shipments have been affected as PC makers do not have enough chips to meet demand. Intel now expects the chip shortage situation to extend into 2023 as well. That said, thanks to Microsoft’s diversified business model, profits would not be too impacted by the negative impact on the PC market. . The company has a thriving cloud business. LinkedIn is also a major contributor to company profits.

MSFT Share Price Forecast

Most Wall Street analysts are bullish on Microsoft stocks. Of the 36 analysts who cover the stock, 33 rate it as a buy or equivalent while the other three analysts rate it as an expectation. None of the analysts rate MSFT stock as a sell.

Its median target price of $ 331 implies a 7% rise from current levels. The highest target stock price of $ 384 is a 24% premium while the lowest target price of $ 280 is a 9.4% discount.

Last week, Morgan stanley reiterated the MSFT share as overweighted while underlining the momentum of the share before the publication of the results. “Outperforming revenues may turn out to be more sustainable operating margins than feared, leading to higher EPS. Our model suggests sustainable growth of BPA in adolescents, ”he said in his note. The brokerage also considers Microsoft’s valuations to be “reasonable.”

microsoft october stock forecast

Microsoft stock valuation

MSFT stock is now trading at an NTM PE (next 12 months) of 35x. The multiples have averaged 27x over the past five years and 20.6x over the past 10 years. The valuation premium reflects the change in perception of the company. After primarily selling Windows and Office products, Microsoft has now established itself in several leading markets.

The company’s valuation multiples have increased significantly under the leadership of Nadella, who has positioned the company as a technology and software company with a focus on high growth industries.

Long-term MSFT stock forecast

MSFT is one of the beneficiaries of digital transformation. The demand for PCs, which has been sluggish for years, has peaked in the past year. In addition, the backbone to cloud and AI would support the company’s long-term profits as well as its valuation. The company also announced a new $ 60 billion share buyback program that would help it increase EPS by reducing the number of shares outstanding.

Overall, despite the recent spike in MSFT stock, it remains one of the best ways to play digital transformation. The stock should continue to generate strong returns over the medium to long term as it expands into high growth emerging sectors.

About Mohit PRO INVESTOR

Mohit Oberoi is a freelance financial writer based in India. He completed his MBA with a specialization in finance and also holds a CFA charter. He has over 14 years of experience in the financial markets. He has written extensively on world markets over the past seven years and has written over 7,500 articles. It covers metals, electric vehicles, asset managers, technology stocks and other macroeconomic news. He also enjoys writing on personal finance and valuation related topics.


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Is Microsoft Stock a buy ahead of the software giant’s September report? http://www.sempatikopekoteli.com/is-microsoft-stock-a-buy-ahead-of-the-software-giants-september-report/ http://www.sempatikopekoteli.com/is-microsoft-stock-a-buy-ahead-of-the-software-giants-september-report/#respond Sun, 03 Oct 2021 21:40:13 +0000 http://www.sempatikopekoteli.com/is-microsoft-stock-a-buy-ahead-of-the-software-giants-september-report/ Software giant Microsoft (MSFT) received praise for its successful transition from desktop computing to cloud computing. And MSFT stock has risen accordingly. Many investors may be wondering: Are Microsoft stocks a buy right now? X Bill Gates and Paul Allen started Microsoft in 1975 at the dawn of the personal computer era to create PC […]]]>

Software giant Microsoft (MSFT) received praise for its successful transition from desktop computing to cloud computing. And MSFT stock has risen accordingly. Many investors may be wondering: Are Microsoft stocks a buy right now?




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Bill Gates and Paul Allen started Microsoft in 1975 at the dawn of the personal computer era to create PC operating system software. The company’s Windows operating system has come to dominate the PC landscape. Microsoft has grown over the years into productivity software, server software, Internet services, video games, and PC hardware and accessories.

Current CEO Satya Nadella took over the reins of the Redmond, Wash., Based company in 2014 and led Microsoft to full force in cloud computing.

The company’s cloud offerings today include Azure infrastructure services, Office 365 productivity software, and Dynamics business software. Microsoft also owns LinkedIn, Skype, and GitHub.

MSFT Stock News: Price Rise

On August 19, Microsoft announced the first price increases for its Microsoft 365 and Office 365 commercial cloud product suites. Microsoft stock jumped 4.7% over two days on the news.

On July 14, Microsoft unveiled Windows 365, a service that transfers its Windows operating system to the cloud. The sales department delivers the entire Windows experience, including apps, data, and settings, to PCs and other devices. It is also creating a new category of hybrid personal computing called Cloud PC, the company said. MSFT stock rose 0.5% that day.

On June 24, Microsoft presented its Windows 11 personal computer operating system. Microsoft shares rose 0.5% on the news. Windows 11 is scheduled for release on October 5.

Windows 11 features a refreshed design with a new user interface and a Start menu. It also provides PC performance improvements and integrates the Teams video conferencing app. Windows 11 is the successor to Windows 10, released in July 2015. Windows 11 will be available this holiday season.

In other recent news, Microsoft announced an agreement to buy Nuance Communications (NUAN) for $ 19.7 billion on April 12. acquisition of Nuance will give Microsoft more weight in the health sector. Microsoft shares rose a fraction on the news.

And, on March 31, Microsoft was awarded a contract to supply more than 120,000 Microsoft HoloLens augmented reality headsets in the US military. The contract is part of the Integrated Visual Augmentation System (IVAS) program. The deal could be worth up to $ 21.88 billion over 10 years. MSFT stock was up 1.7% on the report.

Microsoft follows Amazon in cloud computing

On July 6, the US Department of Defense canceled a major cloud computing contract which he attributed to Microsoft in October 2019. Microsoft beat the favorite Amazon.com (AMZN) to win the contract known as JEDI, or Joint Enterprise Defense Infrastructure. But Amazon has challenged the award of the $ 10 billion contract in court and delayed its implementation.

The Pentagon now plans to open up a new contract, the Joint Warfighter Cloud Capability, to competition. The agency said it would solicit bids from Amazon and Microsoft for the contract.

Meanwhile, Microsoft is protesting the award of a $ 10 billion cloud contract to Amazon by the United States National Security Agency. This NSA contract is codenamed WildAndStormy, according to media reports. Microsoft filed an administrative protest through the Government Accountability Office over the contract.

Amazon Web Services from Amazon.com is the world’s largest provider of cloud infrastructure services. In the second quarter, AWS held a 31% market share, according to research firm Canalys. Microsoft was in second place with 22% market share.

Other major cloud players include Alphabet (GOOGL) the Google Cloud Platform unit, as well as China Ali Baba (BABA) and Tencent (TCEHY). Overall business spending on cloud infrastructure services reached $ 47 billion in the second quarter, up 36% year-over-year, Canalys said.

February 24, Microsoft announced three new industry-specific cloud offerings. They included versions of Microsoft Cloud for financial services, manufacturing, and nonprofits. He also previewed a retail version. In addition, he provided the first update of Microsoft Cloud for Healthcare. Microsoft shares rose 0.6% on the announcement.

Fundamental analysis of Microsoft stocks

End of July 27, Microsoft delivered a beat-and-raise report for its fourth fiscal quarter ended June 30. But Microsoft stock edged down 0.1% on the next day’s news.

Microsoft earned $ 2.17 a share on sales of $ 46.2 billion in the June quarter. Analysts had predicted Microsoft earnings of $ 1.92 per share on sales of $ 44.2 billion. Year over year, Microsoft’s profits grew 49% while sales increased 21%.

The report marked the fourth consecutive quarter of accelerating sales and profit growth for Microsoft.

For the September quarter, Microsoft expects to generate revenue of $ 43.75 billion, up 18% from the same period last year. It’s based on the midpoint of its orientation. Wall Street had predicted $ 42.5 billion in sales for Microsoft’s first fiscal quarter.

Microsoft plans to release its first quarter financial results in late October. This could be the next catalyst for MSFT stocks.

Microsoft has benefited from the trends of working from home and home learning during the Covid-19 pandemic. The trends have spurred an increase in PC purchases. In addition, Microsoft’s cloud software and services help home workers and students.

Technical analysis of the MSFT share

On June 21, Microsoft stock reached a point of purchase from 263.29 on one cup bottom, according to IBD MarketSmith graphics. He climbed to 263.52 before retreating. Microsoft stock closed the regular session that day at 262.63, just below its buy point.

On June 22, the MSFT share entered the shopping area and reached a market capitalization of $ 2,000 billion. This is the second company after Apple (AAPL) to achieve this milestone.

Microsoft stock hit an intraday high 305.84 on August 20.

Microsoft stock has a good IBD Relative Strength Rating 79 out of 99. The best growth stocks generally have an RS rating of at least 80. The relative strength rating shows how a stock’s price performance has compared to all other stocks over the past 52 weeks.

The IBD Inventory Check the tool gives the MSFT stock a IBD Composite Rating out of 95 out of 99. IBD’s Composite Scoring combines five distinct proprietary ratings into one easy-to-use number. The best growth stocks have a composite rating of 90 or better.

Microsoft ranks first out of eight shares in the IBD Computer Software-Desktop group. The desktop software group ranks 53rd out of 197 industry groups followed by IBD. Choosing well-rated stocks from major industry groups in a confirmed uptrend in the stock market generally increases your chances of making profits on growth stocks.

Microsoft stock is on IBD Ranking listing. It is also in the EIA Long-Term Leaders Portfolio.

Is Microsoft Stock Buy It Now?

Microsoft stock is not a purchase at this time. However, he formed a flat base with a buy point of 305.94, according to charts from MarketSmith. The MSFT action closed the ordinary session on October 1 at 289.10.

But Microsoft stock has a IBD Accumulation / Distribution Rating of D-. The rating, on a scale from A + to E, measures institutional purchases and sales of a stock over the past 13 weeks. A + means large institutional purchases and E means large sales. The AC rating is average.

Keep an eye on global stock market. If the market turns south, don’t try to fight the general direction of the stock market.

To find the best stocks to buy or watch, to verify IBD Inventory Lists. Also consult the IBDs Ranking, Smith Market and SwingTrader platforms.

Follow Patrick Seitz on Twitter on @IBD_PSeitz for more articles on consumer technology, software, and semiconductor stocks.

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Repeated strong growth sparks bullish outlook by TipRanks http://www.sempatikopekoteli.com/repeated-strong-growth-sparks-bullish-outlook-by-tipranks/ http://www.sempatikopekoteli.com/repeated-strong-growth-sparks-bullish-outlook-by-tipranks/#respond Mon, 27 Sep 2021 22:00:00 +0000 http://www.sempatikopekoteli.com/repeated-strong-growth-sparks-bullish-outlook-by-tipranks/ Microsoft stock: repeated strong growth sparks bullish outlook I’m bullish on Microsoft (NASDAQ 🙂 as its high growth rate, significant competitive advantages, and bullish Wall Street consensus round out its reasonable valuation. Microsoft is an American multinational corporation that produces personal computers, computer electronics, software, cloud computing systems, and other related software. (See MSFT stock […]]]>

Microsoft stock: repeated strong growth sparks bullish outlook

I’m bullish on Microsoft (NASDAQ 🙂 as its high growth rate, significant competitive advantages, and bullish Wall Street consensus round out its reasonable valuation.

Microsoft is an American multinational corporation that produces personal computers, computer electronics, software, cloud computing systems, and other related software. (See MSFT stock charts on TipRanks)

Strengths

Microsoft is considered one of the top five players in the information technology industry in the United States, along with Apple (NASDAQ :), Amazon (NASDAQ :), Google (NASDAQ 🙂 and Facebook (NASDAQ :). It offers flagship products like its Xbox consoles and its line of touchscreen computers, Microsoft Surface.

The company has been a major beneficiary of companies turning to cloud services during the novel coronavirus pandemic. Azure, Microsoft’s cloud computing software, successfully captured a 20% share of the global $ 150 billion cloud market by the end of the first quarter, which ended in September 2020, and continues to grow.

Azure also has the distinction of being right behind Amazon Web Services in terms of global market share.

Recent results

Microsoft reported revenue of $ 46.2 billion, showing 25% year-over-year growth in its fiscal fourth quarter 2021. The company also reported net profit of $ 16.5 billion, up 47% from last year, and earnings per share of $ 2.17, a 49% improvement over last year.

Microsoft’s commercial cloud revenue grew 36% year-over-year to $ 19.5 billion. Azure revenue growth was reported at 51%, surpassing the 30% overall growth of the Intelligent Cloud segment. The company said the growth was due to the growth in cloud service adoption triggered by COVID-19.

Microsoft also reported a 33% increase in revenue from its Dynamic Products and Services segment, including Dynamic 365, which grew 49%. The company’s LinkedIn revenue increased 46%, and Office Commercial revenue increased 25%.

He also pointed out a few weak links, with a more modest increase in Officer Consumer segment revenue of 18%, Surface revenue down 20% and Windows OEM revenue down 3%.

Overall, for fiscal 2021, the company reported revenue of $ 168.1 billion, an 18% year-over-year increase. In addition, net income was $ 61.3 billion, earnings per share was $ 8.05, and operating income was $ 69.9 billion.

Despite some disappointments during the quarter, the company was generally successful and recorded huge earnings and revenue gains.

Assessment measures

Microsoft stock seems reasonably priced, despite its recent good results. Its forward normalized price / earnings ratio is only 34x and its forward price / free cash flow is only 37.2x, two very attractive elements given the recent strong growth and the formidable competitive advantages of which the company benefits.

In 2022 and 2023, sales and normalized earnings per share are expected to continue to grow in double digits.

The Taking of Wall Street

From Wall Street analysts, Microsoft is getting a Strong Buy analyst consensus, based on 22 unanimous buy ratings given over the past three months. The average MSFT price target of $ 336.19 places the upside potential at 14.4%.

Summary and conclusions

Microsoft is a fantastic company that attracts some of the best and brightest minds in tech.

It continues to innovate successfully to maintain its leadership in its business segments and generates extremely strong growth and profitability.

Meanwhile, its share price remains fairly reasonably valued.

Disclosure: At the time of publication, Samuel Smith does not have a position in any of the titles mentioned in this article.

Disclaimer: The information in this article represents the views and opinions of the author only, and not the views or opinions of TipRanks or its affiliates, and should be considered informational only. TipRanks makes no warranty as to the completeness, accuracy or reliability of this information. Nothing in this article should be construed as a recommendation or solicitation to buy or sell securities. Nothing in the article constitutes legal, professional, investment and / or financial advice and / or takes into account the specific needs and / or requirements of an individual, and nothing in the article constitutes an full or complete statement of the questions or topic is discussed therein. TipRanks and its affiliates are not responsible for the content of the article, and any action taken on the information contained in the article is at your own risk. Linking to this article does not constitute an endorsement or recommendation of TipRanks or its affiliates. Past performance is no guarantee of future results, prices or performance.


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Upcoming products are expected to increase revenue by TipRanks http://www.sempatikopekoteli.com/upcoming-products-are-expected-to-increase-revenue-by-tipranks/ http://www.sempatikopekoteli.com/upcoming-products-are-expected-to-increase-revenue-by-tipranks/#respond Fri, 24 Sep 2021 00:30:00 +0000 http://www.sempatikopekoteli.com/upcoming-products-are-expected-to-increase-revenue-by-tipranks/ © Reuters. Microsoft Stock: Upcoming Products Should Increase Revenue Microsoft (NASDAQ 🙂 is touting a 37.6% price increase since the start of the year, but I’m still bullish on the title. Its forward GAAP P / E is still only 34.2. Microsoft is the No. 1 company engaged in the $ 533 billion software industry. […]]]>

© Reuters. Microsoft Stock: Upcoming Products Should Increase Revenue

Microsoft (NASDAQ 🙂 is touting a 37.6% price increase since the start of the year, but I’m still bullish on the title. Its forward GAAP P / E is still only 34.2.

Microsoft is the No. 1 company engaged in the $ 533 billion software industry. Microsoft 365, a productivity software suite, has 300 million subscribers.

There are over 1.3 billion active Windows 10 devices. The dominance of Microsoft’s operating system and office productivity suite is why MSFT could rise again before the end of 2021. (See Microsoft stock charts on TipRanks)

Microsoft Office 2021 is here

Microsoft’s most compelling quality of investment is its enduring leadership in on-premises and cloud business software. The next October 5 release of Microsoft Office 2021 could increase the numbers for the second quarter of fiscal 2022.

This latest Office suite is for people who still prefer a one-time purchase of lifetime licensed software products.

The Windows 11 Only TPM 2.0 update on October 5 is free. The downloadable / boxed versions of Microsoft 2021 will cost anywhere from $ 150 to $ 250.

The sale of lifetime licenses for Office 2021 allows Microsoft to serve people and businesses that are not Microsoft 365 subscribers. Note that there are 1.3 billion Windows 10 users, but only 300 million users. ‘paid subscribers to Office 365.

Windows 365 is a new catalyst

Computers that are not TPM 2.0 compliant cannot take advantage of the free upgrade to Windows 11. Instead of purchasing new computers with TPM 2.0 hardware, users can simply rent from Windows 365.

The $ 31 / month Windows 10 version of Windows 365 is reasonable. The PC cloud instance has preinstalled Word, Excel, PowerPoint, Teams, and Outlook.

Going forward, Windows 365 could add $ 3-5 billion in new annual revenue for Microsoft. This estimate could increase if Windows 365 becomes available to regular Windows customers.

Microsoft is undervalued

Microsoft stocks have cheaper valuation ratios than its Software-as-a-Service counterparts. MSFT only has a TTM P / E ratio of 37.1x. That’s lower than Adobe (NASDAQ 🙂 at 51.8x, Autodesk (NASDAQ 🙂 at 48.4x, and Salesforce (NYSE 🙂 at 103.8x.

(Source: Motek Moyen)

MSFT’s lower pricing is unfair. Microsoft claims a net profit margin of 36.5%. Salesforce’s net profit margin is only 10%. Microsoft’s TTM net income is $ 61.3 billion, well above Salesforce’s $ 2.35 billion.

MSFT’s Piotroski F score is 8 which means it is very financially sound and has excellent value.

The Taking of Wall Street

The consensus among Wall Street analysts is that Microsoft is a strong buy, based on 23 unanimous buy ratings. The average MSFT price target is $ 334.55, which implies an upside potential of 11.7%.

Conclusion

Microsof’s relative undervaluation makes it an intriguing investment, as its dominant operating system and office productivity suite virtually guarantees its long-term prosperity.

Disclosure: At the time of publication, Motek Moyen does not have any position in any of the titles mentioned in this article.

Disclaimer: The information in this article represents the views and opinions of the author only, and not the views or opinions of TipRanks or its affiliates, and should be considered informational only. TipRanks makes no warranty as to the completeness, accuracy or reliability of this information. Nothing in this article should be construed as a recommendation or solicitation to buy or sell securities. Nothing in the article constitutes legal, professional, investment and / or financial advice and / or takes into account the specific needs and / or requirements of an individual, and nothing in the article constitutes an full or complete statement of the questions or topic is discussed therein. TipRanks and its affiliates are not responsible for the content of the article, and any action taken on the information contained in the article is at your own risk. Linking to this article does not constitute an endorsement or recommendation of TipRanks or its affiliates. Past performance is no guarantee of future results, prices or performance.


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Where are Microsoft’s actions going? http://www.sempatikopekoteli.com/where-are-microsofts-actions-going/ http://www.sempatikopekoteli.com/where-are-microsofts-actions-going/#respond Thu, 23 Sep 2021 07:00:00 +0000 http://www.sempatikopekoteli.com/where-are-microsofts-actions-going/ Microsoft (NASDAQ: MSFT), fell 1.3% in the last twenty-one trading days. Meanwhile, the broad S & P500 has fallen 1.6% over the past twenty-one trading days. According to Trefis’ Microsoft’s valuation of $ 323, there is a potential upside of about 10% from the current price. Now, is MSFT stock poised to grow? Based on […]]]>

Microsoft (NASDAQ: MSFT), fell 1.3% in the last twenty-one trading days. Meanwhile, the broad S & P500 has fallen 1.6% over the past twenty-one trading days. According to Trefis’ Microsoft’s valuation of $ 323, there is a potential upside of about 10% from the current price. Now, is MSFT stock poised to grow? Based on our machine learning analysis of stock price trends over the past ten years, there is a 69% chance of an increase in MSFT stock in the next month (twenty-one trading days). ). See our analysis on The risk of Microsoft’s stock increase for more details.

Five days: MSFT -1.3%, vs S & P500 -3.1%; Underperformed market

(26% probability of event)

  • Microsoft’s actions decreased by 1.3% over a five-day trading period ending 9/17/2021, versus the larger market (S & P500) which fell 3.1%
  • A change of -1.3% or more over five trading days has an event probability of 26%, which has occurred 666 times out of 2,516 in the past ten years

Ten days: MSFT -2.7%, vs S & P500 -4.5%; Outperformed market

(13% probability of event)

  • Microsoft’s actions -2.7% decrease over the last ten trading days (two weeks), compared to the larger market (S & P500) which fell by -4.5%
  • A change of -2.7% or more over ten trading days has an event probability of 13%, which has occurred 332 out of 2,517 times in the past ten years

Twenty-one days: MSFT -1.3%, vs S & P500 -1.6%; Outperformed market

(26% probability of event)

  • Microsoft’s actions decreased by 1.3% over the last twenty-one trading days (one month), compared to the larger market (S & P500) which fell 1.6%
  • A change of -1.3% or more over twenty-one trading days has an event probability of 26%, which has occurred 643 times out of 2,516 in the past ten years

Trefis wallets that beat the market
Trefis Price estimates

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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The Multiple Reasons Microsoft Stock is a Winner http://www.sempatikopekoteli.com/the-multiple-reasons-microsoft-stock-is-a-winner/ http://www.sempatikopekoteli.com/the-multiple-reasons-microsoft-stock-is-a-winner/#respond Mon, 20 Sep 2021 07:00:00 +0000 http://www.sempatikopekoteli.com/the-multiple-reasons-microsoft-stock-is-a-winner/ Iit is as usual for Microsoft (MSFT) in 2021, with the stock on an almost constant steady upward trajectory. Looking Ahead, Tigress Analyst Ivan Feinseth expects the good times to continue, claiming that “the ongoing digital transformation, increasing cloud strength and new product introduction will continue to generate significant revenue and economic profit growth.” In […]]]>

Iit is as usual for Microsoft (MSFT) in 2021, with the stock on an almost constant steady upward trajectory.

Looking Ahead, Tigress Analyst Ivan Feinseth expects the good times to continue, claiming that “the ongoing digital transformation, increasing cloud strength and new product introduction will continue to generate significant revenue and economic profit growth.”

In fact, the 5-star analyst not only reiterated a buy rating for MSFT stock, but also raised the price target from $ 303 to $ 366, which implies a 24% rise from current levels. (To look at Feinseth’s record, Click here)

There are several reasons for Feinseth’s optimistic outlook, including the rare occurrence of an upgrade to the tech giant’s PC operating system. Windows 11 rollout will begin on October 5, the first major upgrade in over six years.

“The new version of Windows will kick off a major PC and software upgrade cycle and provide integration with the next PC platform as a service hosted in MSFT’s Windows 365 cloud,” said the analyst.

Windows 365 is the company’s “latest evolution” in a complete cloud transition and offers a “complete computing experience hosted in the cloud”. It also offers “increased security” and allows users to stream access to all apps, tools and data “on any device”. Additionally, in today’s WFH environment, companies can support remote employees, including seasonal, temporary, intern and contract workers. Feinseth says migration to the cloud, increasing employment trends and “strong pricing power” will continue to favor Microsoft and notes that even moderate price increases can lead to significant revenue growth and “profitability gains”.

But that’s not all. Microsoft is also a force to be reckoned with in gaming. Developing its successful Game Pass subscription service later this year, MSFT will integrate its Xbox consoles into the Xbox Cloud Gaming streaming service, adding an additional option for mobile devices and desktops.

Feinseth says Xbox Cloud “eliminates the need for game downloads,” noting CEO Satya Nadella called it a “breakthrough experience.”

And finally, the icing on the cake is the company’s stellar balance sheet, which at the end of 2Q21 had a cash surplus of $ 127.96 billion – $ 17.00 per share.

“We expect MSFT to generate $ 124.19 billion in economic operating cash flow (EBITDAR) from NTM, which will continue to drive growth initiatives and strategic acquisitions as well as continued return. of liquidity to shareholders, ”said the analyst energetically.

Obviously, Feinseth’s colleagues also believe Microsoft is in a good position to deliver. The stock has a strong buy consensus rating, based on a unanimous 23 buy count. The forecast calls for year-over-year gains of around 14%, given that the average price target is currently $ 334.55. (See the analysis of Microsoft stocks on TipRanks)

To find great ideas for trading stocks at attractive valuations, head over to TipRanks’ Best stocks to buy, a recently launched tool that brings together all the information about TipRanks shares.

Disclaimer: The opinions expressed in this article are solely those of the analyst presented. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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Microsoft shares rally as Morgan Stanley “cautiously estimates” 10% dividend hike soon http://www.sempatikopekoteli.com/microsoft-shares-rally-as-morgan-stanley-cautiously-estimates-10-dividend-hike-soon/ http://www.sempatikopekoteli.com/microsoft-shares-rally-as-morgan-stanley-cautiously-estimates-10-dividend-hike-soon/#respond Wed, 15 Sep 2021 07:00:00 +0000 http://www.sempatikopekoteli.com/microsoft-shares-rally-as-morgan-stanley-cautiously-estimates-10-dividend-hike-soon/ Microsoft Corp. shares rose on Tuesday to counter the sell-off in the broader stock market, as the software giant is expected to announce another dividend hike as early as this week. The MSFT share, -0.31% rose 0.9% to close at $ 299.79 and was the DJIA’s top performer on the Dow Jones Industrial Average, -0.31% […]]]>

Microsoft Corp. shares rose on Tuesday to counter the sell-off in the broader stock market, as the software giant is expected to announce another dividend hike as early as this week.

The MSFT share,
-0.31%
rose 0.9% to close at $ 299.79 and was the DJIA’s top performer on the Dow Jones Industrial Average,
-0.31%
Components. The Dow Jones lost 292 points, or 0.8%.

Over the past 11 years, Microsoft announced an increase in its quarterly dividend in mid-September, with all announcements made between September 15 and September 21.

Morgan Stanley analyst Keith Weiss pointed out that over the past few years the percentage of dividend increase has hovered around the “high single digit / low double digit range” regardless of the growth. of operating profit.

So even though Microsoft reported operating profit growth of 32.0% in the 12 months to June 30 at the end of July, Weiss said it “conservatively estimates” an increase of around 10%. quarterly dividend from 56 cents per share to 62 cents per share.

That said, given another year in which operating profit rose more than 20%, Weiss said he sees “the capacity for a larger dividend increase.”

If the dividend is raised to 62 cents per share, the new annual dividend rate would imply a dividend yield of 0.83%, based on the closing share price on Tuesday. This would be lower than the implied return of the S&P 500 SPX index,
-0.35%
1.35%, according to FactSet, but higher than the return of the SPDR Technology Sector Select Sector XLK index fund,
-0.41%
0.69%.

Of the five U.S. companies with market capitalizations over $ 1,000 billion, Microsoft’s is the highest, such as Apple Inc.’s AAPL,
+ 0.25%
the current dividend yield is 0.59%, while Alphabet Inc. GOOGL,
-0.08%

GOOG,
-0.07%,
Amazon.com Inc. AMZN,
+ 2.50%
and Facebook Inc. FB,
-0.96%
do not pay a dividend.

Meanwhile, Microsoft’s dividend yield has tended to decline for nearly the past decade and fell to its lowest level in 17 years, with the pace of increases lagging behind the pace of increases in the price of stocks, especially recently.

FactSet, MarketWatch

The stock has grown an average of 37.5% in each of the past five years, including this year, and has climbed an average of 28.6% over the past 10 years, while the dividend increase has averaged 9.2% over the past five years and 13.5% in the past 10.

Microsoft’s stock, which was only 1.6% below the record high of $ 304.65 on August 23, 2021, has climbed 43.6% in the past 12 months, while the tech ETF SPDR rose 34.4% and the Dow Jones climbed 23.5% in the past year. .


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