If you know a thing or two about investments, you know that many investors have Microsoft in their portfolios. Thanks to the change of leadership in the company and supervision by CEO Satya Nadella, Microsoft started seeing some benefits. Their stock has increased during the past few years and the company now pays a solid dividend.
Why is investing in Microsoft a good move? Well, here are three reasons to think about.
Cloud Business Boosts Microsoft Stock
One of the key businesses for Microsoft is their cloud. Sure, they gain some revenue from the hardware but the cloud is one of their largest branches. Microsoft Azure, as the company calls its cloud business, made significant progress since its inception. With its experience in the operating system manufacturing, Microsoft delivers top-of-the-line cloud products which drastically impact their stock.
Based on the results from the beginning of 2019, Amazon dominates the cloud space with an amazing 35% and Microsoft is a distant second place with 15%. On the other hand, Microsoft Azure grows very fast, which promises good results in the next couple of years.
The Gaming Impact on Microsoft Stock is Significant
Let’s talk gaming for a second. Two giants, Microsoft’s Xbox and Sony PlayStation 4 are currently dominating the console world. Companies like Amazon and Google are trying to remove the consoles altogether by migrating video games to the cloud. But, as Microsoft has experience in this field of work, their gaming revenue will stay persistent or continue to grow. Streaming games will never be as good as playing them directly on the consoles, as games become more data-intensive and latencies are high for that reason.
Hardware Still Plays a Big Role for Microsoft
To put it simply, Microsoft is still dominant in terms of hardware. The Microsoft PCs are currently more practical than Apple’s and on top of that, they have gaming capabilities. Windows 10 operating system is far more dominant than MacOS and with that said, Microsoft will continue to gain stock in its hardware compartment.