Technology is always one step ahead and focuses on innovation. MSFT continues to expand the hybrid capabilities of cloud platforms, enabling customers to run apps on-premises, at the edge and across multiple clouds. Amazon (AMZN) AWS remains the market leader, but its market share is shrinking and Azure’s share is increasing. MSFT’s cloud services also look into challenging areas such as screening and testing for COVID-19. COVID-19’s Smart Screening Center, Citizen Care Pod, based in Canada, is built on Azure IoT and Azure Cognitive Services.
Additionally, Microsoft’s equity profit margin is around too good. Analysts expect revenue to grow 12% this year and nearly 14% next year. This means that Microsoft shares are trading at a slightly higher price. However, with double-digit earnings growth, stock prices are less likely to fall. Overall, the current macroeconomic environment continues to adjust to the stock market, and Federal Reserve Board Chairman Jerome Powell recently said interest rates have been low for “how long”. Additionally, top techs like Microsoft, Facebook, Netflix, and Amazon are already leveraging this period to strengthen their dominant positions in their respective sectors instead of being hit by the coronavirus pandemic. It seems to have been done. The accelerating digitalization of the economy has the potential to help people, especially people like Microsoft.
WHY MSFT stock is a good buy for the long term?
On October 20, MSFT took cloud computing to the next level with the announcement of Azure Space. The company creates cloud functions to meet the special requirements of space technology. MSFT does not report any specific revenue from Azure. The company only mentions growth rates. In the fourth quarter of 2020, Azure grew 47% compared to 64% in the quarter a year ago.
Due to the size of Azure, the price of MSFT stock at https://www.webull.com/quote/nasdaq-msft is getting continuous impact. While cloud use and Azure adoption increased during the pandemic, it will be difficult to acquire new customers in a highly competitive market during the crisis. According to MSFT, transaction licensing continued to slow, especially in small businesses. The smart cloud business was $ 13.4 billion, up 17% year-on-year.
There is no mistake from the R&D team. Earnings were much better than expected, with revenues of approximately $ 37.2 billion and earnings per share of $ 1.82. That’s better than analysts’ estimates of $ 35.7 billion with revenue of $ 1.54, which is way above both revenue and earnings. The strong performance was buoyed by the smart cloud segment, whose revenues grew nearly 20% to around $ 13 billion. You can get more information at https://www.webull.com/newslist/nasdaq-msft.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.