Microsoft (Ticker: MSFT) stock had a great year. Since the lows of the pandemic the stock price rose more than 70%, However we at MostTraded Still believe that it is undervalued and still has a long way to go.
Microsoft’s (MSFT) price prediction is not an easy one to make, however, they are involved in most of the biggest growing industries such as Big Data and Analytics, Networks and Computer Systems, Robotics, Bioinformatics, Financial Services Innovation. Microsoft will be gaining from all of these growing industries. Microsoft is benefiting from a second wave of digital transformation as well as strength in gaming industry.
CEO Satya Nadella has reinvented Microsoft into a cloud leader. Microsoft has become one of two public cloud providers that can deliver a wide variety of PaaS/IaaS solutions at scale. Additionally, Microsoft has accelerated the transition to a subscription model. The company has also embraced the open-source movement. Finally, Microsoft exited the low-growth, low-margin mobile handset business and is driving gaming to be more cloud-based. These factors have combined to drive a more focused company that offers impressive revenue growth with high and expanding margins.
Azure is the centerpiece of the new Microsoft. Even though estimates show it is already an approximately $20 billion business, it grew at a staggering 56% rate in 2019. Azure also is an excellent launching point for trends in AI, business intelligence, and Internet of Things, as it continues to launch new services centered around these broad themes.
Microsoft is also shifting its traditional on-premises products to become cloud-based SaaS solutions. Critical applications include LinkedIn, Office 365, and Dynamics 365. Office 365 retains its virtual monopoly in office productivity software.
Add Xbox and growing gaming industry to these mix and we get a winning company that 24 out of 24 analysts covering that stock are advising investors to buy:
We all know that analysts set price targets modestly, sot MSFT price prediction of $280 should seem like a joke to long term value investors. That is backed by the fact that hedge funds are heavily investing into Microsoft as well.
Microsoft is a great Innovative company that has huge upside potential and that pays dividends as well. You can invest in Microsoft commission-free with the help of our trusted partner eToro. Just click on the banner below and register (it just takes 5 minutes):
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