During the past couple of months, Microsoft didn’t enjoy a significant amount of earnings. As much as their stock has been stagnating, the prognosis for Microsoft is still lukewarm, albeit not from Windows 10 sales, which have been, reportedly, weak. However, Microsoft has another tactic in its sleeve, and that’s Cloud business, as well as Office 365 products.
Results from the Second Quarter
Per share, Microsoft earned a total of $1.10. As for the YoY revenue, it rose 12% to a total of $32.5 billion. While Windows 10 showed the worst results, their two biggest branches (Business and Productivity, Intelligent Cloud) produced amazing results. Still, if we compare the YoY revenue of productivity and business, which grew 13% to $10.1 billion to LinkedIn’s revenue, things aren’t that impressive. LinkedIn’s YoY revenue grew to the huge 30%, while Azure’s sales are bumped to 76%. That being said, Microsoft’s Cloud-based business is progressing well, albeit not that great.
Achilles Foot – Windows 10
With the shrinkage of the PC market during the past couple of months, Windows 10 sales were abolished. Whether the market or Microsoft is guilty, that’s yet another question but Windows 10 doesn’t perform well. In fact, many users reported broken updates and these users are usually going back to Windows 7, which again, makes Windows 10 more and more obsolete. On the other hand, many companies are going for Windows 10, as it offers more security options and support for different hardware and software.
The Final Thoughts on Microsoft’s Stock
As it stands, Microsoft makes a lot of revenue from their Cloud and Business branches. And while Windows 10 isn’t a promising product for the company, they manage to stay on top thanks to the aforementioned parts of their business. As such, InvestorPlace thinks that buying Microsoft stock is a great idea, especially if the PC makers sort out their business. In that case, their stock may only rise from the current value. Keywords: MSFT – microsoft stock forecast 2020, msft stock, microsoft stock predictions 2019, microsoft stock long term outlook