Microsoft (MSFT) stock has been on a bullish run lately, and for good reason. The tech giant has been making strategic moves that have positioned it for long-term growth and profitability. As of March 2023, Microsoft’s stock is up by over 20% year-to-date, outperforming the broader market. In this article, we’ll explore some of the reasons why Microsoft’s stock has been on the rise and why it’s a good time for investors to consider adding it to their portfolios.
From Gatekeeper to Innovator: How Microsoft is Driving Strategic Innovation
Innovation has been the driving force behind Microsoft’s recent success. The company has made significant investments in emerging technologies such as artificial intelligence, cloud computing, and the Internet of Things. This has allowed Microsoft to transform from a gatekeeper of technology to an innovator that is driving digital transformation across industries.
One of the ways Microsoft is driving strategic innovation is through its finance teams. In a recent blog post, Microsoft highlighted how its finance teams are using technology to drive innovation. By leveraging tools such as Power BI and Azure, finance teams are able to analyze data in real-time, gain insights, and make informed decisions. This has allowed Microsoft to streamline its financial operations, reduce costs, and improve efficiency. By leading the way in digital transformation, Microsoft is well-positioned for long-term growth as more companies embrace technology to drive innovation.
The Google Engineer Who Thought He Could Compete with Microsoft
Another reason why Microsoft’s stock is on the rise is its increasing dominance in the tech industry. Even former Google engineer, James Damore, saw the writing on the wall when he attempted to launch a new search engine to compete with Google and Microsoft. He quickly realized the immense challenges of trying to dethrone these behemoths, saying, “It’s very hard to compete with a company like Google or Microsoft that has so much infrastructure and so much money.”
Microsoft has become a dominant player in the cloud computing space, with its Azure platform rapidly gaining market share. In fact, Microsoft’s commercial cloud revenue grew by 36% in the most recent quarter, driven by strong demand for its Azure and Office 365 products. With its strong financial position and growing dominance in the tech industry, Microsoft is well-positioned to continue its upward trajectory.
Microsoft’s Acquisition of Activision Blizzard
Another recent development that has boosted Microsoft’s stock is its acquisition of video game giant Activision Blizzard. The $68.7 billion deal is the largest in Microsoft’s history and is expected to close later this year. While there has been some speculation that the European Union may demand asset sales as a condition of approval, sources suggest that this is unlikely to happen.
The acquisition of Activision Blizzard gives Microsoft access to some of the most popular video game franchises in the world, including Call of Duty, World of Warcraft, and Candy Crush. This move is part of Microsoft’s broader strategy to expand its reach beyond its traditional software offerings and into new markets.
Why Now is the Time to Invest in Microsoft (MSFT) Stock
Given Microsoft’s strong financial position, increasing dominance in the tech industry, and strategic investments in emerging technologies, now is a great time for investors to consider adding MSFT stock to their portfolios.
In addition to its recent acquisitions and investments in emerging technologies, Microsoft also offers a solid dividend yield of 0.8%. This provides investors with a steady income stream while they wait for the stock to appreciate in value.
In conclusion, Microsoft (MSFT) stock has been on a bullish run lately, driven by the company’s strategic investments in emerging technologies, increasing dominance in the tech industry, and recent acquisition of Activision Blizzard. With its strong financial position and solid dividend yield, now is a great time for investors to consider adding MSFT stock to their portfolios.