3 reasons why Microsoft Stock belongs in your wallet

If you were to go for a ‘high tech’ stock right now to allocate a significant amount of capital, you would be hard pressed to find a better option than Microsoft (NASDAQ: MSFT). It’s a company that seems to have been around forever, but continues to innovate and find new ways to drive growth. As a dominant force in the tech world, Microsoft has built a truly impressive business model and there is plenty of reason to believe that there are more good things to come for the company.
Whether you already own Microsoft or want to add stocks now, we’ve put together a list of 3 reasons why it’s a stock that belongs in your portfolio.
Microsoft’s cloud business is the future
Microsoft is the world’s largest software publisher, best known for its productivity and business process products such as Windows and Office, in addition to its personal computing devices. Its products are used by companies all over the world and it is safe to say that it is a company with a dominant position in the market. That said, the company’s CEO Satya Nadella has steered the company towards a cloud model that is very likely to bring Microsoft into a new era of success.
More and more businesses and businesses are migrating to the cloud every day, and Microsoft is well positioned to take advantage of the digital transformation of the business world. The company has roughly doubled its market share to 17% in the public cloud infrastructure industry over the past few years and this market position is only expected to strengthen given the dynamics and competitive advantages of the industry. ‘business. In Q2-21, Microsoft’s Azure revenue notably grew 50% year-on-year and helped push smart cloud revenue to $ 14.6 billion, up 23% year-on-year. year-over-year. The bottom line here is that the company’s revenue from cloud versions of Office, cloud-based businesses like LinkedIn, Bing, and Xbox-Live, and the aforementioned Azure will drive Microsoft’s growth for years to come.
In the news for all the right reasons
Another good reason to consider adding Microsoft stock right now is that the company has been in the headlines for all the right reasons lately. First off, you heard that Microsoft is in exclusive talks to acquire the Discord Inc. messaging platform for $ 10 billion. Although the deal is not set in stone, the movement would be huge for Microsoft because it could help the company to finally become the true leader in video games. Discord saw its monthly active users double last year to 140 million and is a popular platform for gamers. Just think of all the data and information Microsoft could use from the platform to take its video games to the next level.
Microsoft also made the news this week after the company announced it had won a contract with the U.S. military for augmented reality headsets that could be worth up to $ 21.9 billion over 10 years. This is great news because it shows that the company continues to generate revenue through its research into innovative products. The headsets will be based on the company’s HoloLens augmented reality technology, which allows users to see holograms overlaid on their actual surroundings. These are the types of stocks that should give investors additional conviction in buying stocks and confirm that Microsoft is truly a one-of-a-kind company.
Strong techniques and lower volatility than other tech stocks
Anytime you have several basic reasons for buying a company like Microsoft and the specs of the stock line up as well, this is a perfect match. This is the case with Microsoft stock right now, as the stock broke after more than a month of consolidating to above-average volume this week. Microsoft stocks are also back above all major moving averages after the recent weakness in tech stocks, which is another good sign that higher prices may be on the way.
It’s also worth mentioning that Microsoft is a great tech stock for long-term investors because it’s less volatile than all of the FAANG actions. With a beta of 0.79, you can rest easy knowing that you own a tech stock with a massive upside that won’t be as sensitive to some of the big price swings we’ve seen in the market recently. Microsoft is expected to release its third quarter results on April 27, and it wouldn’t be surprising to see the stock hit new all-time highs in anticipation of the release.