Microsoft stock has been on a downward trend recently, but it might not be a cause for concern. Despite this, the company remains a high-quality industry leader with robust growth prospects.
Microsoft’s Productivity & Business Processes and Intelligent Cloud segments have seen strong double-digit revenue and profit growth. The company is also expanding its margins and experiencing high demand for AI-driven cloud services.
Future price increases for Office software subscriptions will help boost revenue, while capital returns through buybacks and dividends further support the bullish outlook. With a low valuation compared to peers, a fortress balance sheet, and a “buy” rating, Microsoft appears to be an attractive investment opportunity despite its recent underperformance.
Source: https://seekingalpha.com/article/4872986-microsoft-plunge-a-gift