Is Microsoft a Good Stock to Buy? EPS is expected to climb by 14% to $10.54 in 2022/3, with a further increase of 18% to $12.42 per share penciled in for 2023/4. The stock trades for an expensive price-to-earnings multiple. This story was published at an earlier date and has been updated with new information. The Copilot feature uses next-generation AI to automate and simplify tasks and provide suggestions. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Apple posted a rare miss on earnings and revenue last quarter and declined to provide firm guidance for this quarter because of economic uncertainty. There are too many stocks with market-crushing potential, and I'd rather focus on them. Sales growth slowed to 12% in the most recent quarter from 21% last year. financial data for more than 25 000 publicly traded companies based on our calculated Ad. To make the world smarter, happier, and richer. 10 of the Best Stocks to Buy for 2023. Today, Wall Street analysts give Microsoft plenty of love for its new growth trajectory, with MSFT expected to earn $7.77 per share in 2021, $8.28 in 2022, and $9.53 in 2023. You can buy new plots and use materials from abandoned buildings to expand your farm. It being a multi-billion-dollar (or even trillion-dollar) company doesnt matter. With more than 2.7 billion active users, there is no shortage . Actual growth could prove to be even higher . 1. 3.371 In 2022, it has definitely . Is Apple Stock A Buy Right Now? Microsoft earned an adjusted $2.32 a share on sales of $52.7 billion in the December quarter. That decision proved prescient. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. What Is the Kenvue IPO Price Range? Buy candidate since 2023-04-26 Gain 4.03% PDF. The Motley Fool has positions in and recommends Activision Blizzard and Microsoft. Cost basis and return based on previous market day close. Even though its earnings forecast has also declined, that . Cost basis and return based on previous market day close. The company's Windows operating system came to dominate the PC landscape. Analysts polled by FactSet had predicted Microsoft earnings of $2.29 a share on sales of $53 billion. Better still, long-term investors currently have the opportunity to begin or add to a position in this proven winner at a significantly discounted price. Microsoft's lead in areas like digital transformation, productivity, gaming, and cloud services will translate into higher annual earnings over time, even if the outlook is cloudy over the next few quarters. Potential to increase market share . liable for your own investment decisions and agree to the So, FY 2023 will be a bit of a breather for Microsoft, but 2024 will pick right back up where 2022 left off. Qualcomm QCOM, +0.10% benefits as . I am a passionate self challenger and endless learning. Make more money in stocks with 2 months of access to IBD Digital for only $20! On Feb. 7, Microsoft showed off its new Bing search engine and Edge web browser that use AI technology. Learn More. The content COMMUNICATION<br> 2+ years of experience in a frontline role serving customers as a barista crew and bar<br>crew leader.<br> 3 months experience In Customer Service . In the fourth quarter, Amazon Web Services had 32% market share, according to research firm Canalys. 10 best stocks to buy for 2023 list is up 13.1% through . (0.56%) than the support at $295.37 The tech giant continues to generate an astounding amount of profit and cash flow, including $73 billion in net income and $65 billion in free cash flow over the trailing 12 months. With its strong position within the cloud, gaming, and digital transformation megatrends, Microsoft has many years of growth still ahead. It launched Microsoft Security Copilot, a new tool for enterprises to quickly detect and respond to threats and better understand the threat landscape. The Microsoft stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Microsoft is gaining on Amazon.com's (AMZN) Amazon Web Services in the market for cloud infrastructure services. The Walt Disney Company. Here's What IBD Charts Show, Learn How To Time The Market With IBD's ETF Market Strategy, Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists, Join IBD Live For Stock Ideas Each Morning Before The Open. Earnings follow this same pattern as well. For this reason, its popularity should continue long into the future. With plans to expand its hold in gaming, digital advertising, and cloud computing in 2023, Microsoft's stock looks like a must buy. Why Is SoFi Stock Down After Earnings? Remove the guesswork and make informed decisions faster. Johnson & Johnson reports 73% complete remission for bladder cancer therapy, 7 High-Yield Dividend Stocks to Buy and Hold Forever, Here Are The Best Sector ETFs And Major Sector-Moving Stocks In April, Pfizer, GSK, AbbVie among pharmas set to rise with May catalysts, J&J to 'indemnify' Kenvue from any talc-related costs, Registration on or use of this site constitutes acceptance of our. Amazon Beat Estimates. Comparative assessments and other editorial opinions are those of U.S. News Watch: Introducing the Morningstar Capital Allocation Rating. Pick a Brokerage. In summary, MSFT should still deliver decent . The company's cloud offerings today include Azure infrastructure services, Office 365 productivity software and Dynamics enterprise software. (3.33%), our systems don't find the trading risk/reward intra-day A break-up at the top trend line at $307.98 will firstly indicate a stronger rate of rising. 10 of the Best Stocks to Buy for 2023 U.S. News' 10 best stocks to buy for 2023 list is up 13.1% through April 24, compared to a 7.7% gain for the S&P 500. With the stock trading at 27 times 2024 earnings, it's quite expensive for the 11% growth expected in FY 2024. To find thebest stocks to buy or watch, check outIBD Stock Lists. It also has a PC division, builds Xboxes, and owns LinkedIn. Microsoft stock is in the IBD Long-Term Leaders Portfolio. If You Do This, You Won't Have to Worry About Them, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. In this case, it's the cash flow growth that's being looked at . On Friday, 28th Apr 2023, Microsoft stock price gained 0.797%, rising from $304.83 to $307.26. The predicted opening price is based on yesterday's movements between high, low, and closing price. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Whether theres high-inflation, deep recessions, a debt-ceiling crisis or otherwise. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. Invest better with The Motley Fool. The post 3 Long-Term Stocks to Buy and Hold Forever appeared first on InvestorPlace. Another top tech stock to note would be Microsoft. Furthermore, Amazon's negative $26.3 billion in free cash flow as of Sept. 30, compared to Microsoft's $63.3 billion, makes the Xbox manufacturer feel like a more secure investment for now. However, that doesnt make it undependable. ($8.8 billion in its fiscal Q4 and $32.7 billion over fiscal 2022). Our analysts think both Apple and Microsoft have carved out wide economic moats. After hitting an all-time high in 1999, it didnt do so again until 2016. *Real-time prices by Nasdaq Last Sale. Price as of April 28, 2023, 4:00 p.m. Dani Cook has no position in any of the stocks mentioned. After blowing past analyst expectations for its first quarter 2022 earnings, Microsoft Corporation ( MSFT) became the world's most valuable company last week. Microsoft stock earns a 4-star rating as of this writing, while Apple stock earns a 3-star rating. Learn More. As a potential recession looms, learn what risk factors to watch for and how to optimize your portfolio. The company's primary growth driver has been its cloud computing platform, Azure. Morningstar senior analyst Dan Romanoff expects results to remain subdued for several quarters. Microsoft Corp currently has a 0.9% dividend . (-3.83%) Wed like to share more about how we work and what drives our day-to-day business. Gear advertisements and other marketing efforts towards your interests. Slow revenue growth and falling earnings aren't a recipe for success, yet the stock is up around 20% since it reported earnings on Jan. 24. That market share position is a better indicator of long-term growth than quarter-to-quarter sales swings. Also consult IBD's Leaderboard,MarketSmithandSwingTraderplatforms. Authors may own the stocks they discuss. Wallet Investor held a neutral-to-bullish short-term outlook for Microsoft stock based on an analysis of multiple . *Average returns of all recommendations since inception. Besides a year when its earnings were inflated and skewed its historical price-to-earnings (P/E) ratio, Microsoft has traded in the mid-to-high 20s valuation range. which gives a possible trading interval of +/-$7.01 (+/-2.29%) up or down from last closing price. For a tech company, thats a long lifespan. When you're looking for stocks to buy and hold forever, it's always a little scary to pick a tech name. In Farm Manager 2022, as a farm manager, you have to ensure the right level of harvest, employee satisfaction, animal health, equipment efficiency and proper crop processing. Microsoft expanded over the years into productivity software, server software, internet services, video games, and PC hardware and accessories. It is a defensive stock with massive growth potential. The gaming business could take . Georgia is a state in the Southeastern region of the United States, bordered to the north by Tennessee and North Carolina; to the northeast by South Carolina; to the southeast by the Atlantic Ocean; to the south by Florida; and to the west by Alabama.Georgia is the 24th-largest state in area and 8th most populous of the 50 United States.Its 2020 population was 10,711,908, according to the U.S . Making the world smarter, happier, and richer. John Divine April 25, 2023 Demitri Kalogeropoulos has positions in Activision Blizzard. A company with an economic moat can fend off competition and earn high returns on capital for many years to come. Many Good Reasons to Buy these AI stocks in 2023 to keep for long term. The growth was primarily thanks to the Intelligent Cloud segment, with Azure earnings showing year-over-year revenue growth of 20% to $20.3 billion. Essentially, the company develops and supports a range of software . Although the tech giant enjoys dominant market positions in attractive software, cloud services, and gaming niches, shares are trailing the market in 2022 on fears of a major slowdown ahead. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Fears of a potential recession drive many businesses to pare back their technology investments. Like its peers, the company is seeing a growth hangover compared to soaring sales over the last two years. Microsoft is providing its Azure cloud computing infrastructure for OpenAI. Zacks Top 10 Stocks: Compiles the best 10 stocks to buy and hold throughout the year.Each pick comes with in-depth research, and is actively managed, with quarterly updates. Realtime quote and/or trade prices are not sourced from all markets. X There are clear winners and losers at the start of April. Invest better with The Motley Fool. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. For instance, Microsoft's (MSFT -0.55%) shares have tumbled 26% year to date, while Amazon's (AMZN -3.22%) have fallen 48% in the same period. The symbol for Microsoft is MSFT and it is traded on the NASDAQ (NASDAQ Stock Exchange). For example, Microsoft struck a deal to purchase video game leader Activision Blizzard for a whopping $68.7 billion in January to further bolster its gaming business. This combination is very rare and often followed by long and strong gains for the stock in question. Both Apple and Microsoft earn our top rating when it comes to capital allocation. What is the market capitalization of Microsoft Stock? A stocks price/fair value is simply its current market price divided by the fair value estimate. It then reversed to a 0.2% decline. John Divine April 25, 2023 How to Invest in the S&P 500 This represents a decline of 23.6%. Our recommended stop-loss: The 52-week high for Microsoft Stock is $308.93 and the 52-week low is $213.43. The Morningstar Rating for stocks encapsulates just that. Just days ago, its board of directors approved a 10% increase to its quarterly cash payout, bringing its current yield to a respectable (for a tech growth stock) 1.2%. It doesnt matter if you have $500 or $5 million. But Microsoft ranks third out of six stocks in IBD's Computer Software-Desktop industry group. Is SoFi Stock a Buy Now? The information and content are subject to change without notice. Why Is SoFi Stock Down After Earnings? To make the world smarter, happier, and richer. Making the world smarter, happier, and richer. Bank Failures Widen. Privacy Policy and Over the past 10 days, the stock has dropped in 6 of them, yet it has still increased 5.8% in the last two weeks. It generated a whopping $89 billion of cash flow in the last full fiscal year (ended in June), compared to $77 billion in fiscal 2021. Microsoft Corporation ( NASDAQ:MSFT ) received a lot of attention from a substantial price movement on the NASDAQGS. Invest better with The Motley Fool. Joe Tenebruso has the following options: long January 2024 $100 calls on Amazon. Get ready for a logistic challenge in the next part of the best-selling series, which has been sold in over 120,000 copies! Azure sales rose 38% in constant currency in the December quarter. But savvy investors know that economic downturns, while painful, can give you a chance to build enormous wealth in the stock market by buying shares of excellent companies at steeply discounted prices. InvestorPlace - Stock Market News, Stock Advice & Trading Tips. Meanwhile, Microsoft's proposed acquisition of video game publisher Activision Blizzard (ATVI) is facing challenges from antitrust regulators. Cash returns will also be ample, as illustrated by the $12.4 billion that Microsoft sent back to investors last quarter through stock buybacks and dividends. Many investors will be happy to see 2022 end. Although Gates is not as hands-on at Microsoft as he once was, he still owns about 1.3% of the company, a stake worth around $27 billion. I cant say enough good things about Johnson & Johnson (NYSE:JNJ). (0.80%) $2.43. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Data source: Microsoft and Yahoo! Currently also graduates of business<br>administration are interested in the field of human resource management and finance.<br>PROFESSIONAL SKILLS :<br>1. The stock lies in the upper part of a wide and strong rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. Microsoft said the Activision purchase will accelerate the growth of its gaming business and provide building blocks for the coming metaverse. Invest better with The Motley Fool. Buy it if you think it will go up in value. entities, such as banks, credit card issuers or travel companies. Some negative signals were issued as well, and these may have some influence on the near short-term development. Most people would be no stranger to what the company has to offer. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements. AWS is incredibly promising for Amazon's future; despite being the smallest segment, it managed to make up for the $2.89 billion operating loss in the company's e-commerce segment. Microsoft's incredible cash flow generation and massive cash reserves -- which exceeded $100 billion as of June 30 -- also enable it to acquire other attractive growth companies. Both stocks struggled last year, down more than 25% apiece. Microsoft finds support from accumulated volume at $295.37 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested. The Most Important Ages for Retirement Planning: Age 59 , The Most Important Ages for Retirement Planning: Age 65, The Most Important Ages for Retirement Planning: Age 66, The Most Important Ages for Retirement Planning: Age 70 . More than six decades of annual increases speak to not only the business, but the culture that management has instilled at the top. Some of Microsoft's problems may be short lived. 4. Late on Jan. 24, Microsoft reported mixed results for the December quarter and gave disappointing guidance. 3. Its Windows operating system held a 70.68% market share as of August 2022, a majority share for at least the last decade. Keithen Drury has no position in any of the stocks mentioned. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. Its dividend has been a focus in recent years, with the company having raised its payouts for a dozen straight years. According to the issued ratings of 36 analysts in the last year, the consensus rating for Microsoft stock is Moderate Buy based on the current 1 sell rating, 3 hold ratings and 32 buy ratings for MSFT. Find out about Morningstars Shares of GE stock cleared a handle buy point at 81.28 in late . technical signals. If You Do This, You Won't Have to Worry About Them, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. On Jan. 23, Microsoft announced a new investment, reportedly worth $10 billion, in artificial intelligence startup OpenAI. But one of these stocks is attractive today. Apple (AAPL -0.05%) and Alphabet (GOOG -0.47%) (GOOGL -0.13%) should also not be overlooked. In total, 21 million shares were traded for approximately $6.34 billion. For instance, Microsoft's (MSFT 3.20%) shares have tumbled 26% year to date, while . MSFT Stock Buybacks (Quarterly) data by YCharts. The company is a juggernaut and a cash cow, winning over young and old consumers alike. In its most recent quarter, Microsoft's intelligent cloud segment rose 20% year over year to $20.3 billion, with operating income earning $8.9 billion. QCOM + MMP = 4.0% very safe yield and 17.3% CAGR long-term return potential (K1-tax form) There are a lot of stocks we could include on this list, but I think Starbucks (NASDAQ:SBUX) deserves a spot. KVUE Stock IPO: When Does Kenvue Go Public? On March 17, MSFT stock broke out of a flat base at a buy point of 276.86, according to IBD MarketSmith . However, when comparing its price-to-earnings ratio of 82 against Microsoft's more attractive 26, the Windows company offers more value. Ownership data provided by Refinitiv and Estimates data provided by FactSet. The deal has been undergoing regulatory scrutiny over the last few months, with Activision CEO Bobby Kotick saying on Nov. 8 that he believes the acquisition will be complete by the end of Microsoft's fiscal 2023 in June. This Could Be Your Biggest Trade For 2023? I started buying it at $160. The best growth stocks typically have RS Ratings of at least 80. Amazon.com (AMZN) Q1 2023 Earnings Call Transcript, Despite Its Falling 92%, Cathie Wood Is Buying More of This Growth Stock. 2 Numbers Microsoft Investors Have a Right to Know, The Brains Behind AI: Why Microsoft and Alphabet Stocks Are Smart Choices for Artificial Intelligence Investors, The Wisdom of Time: Long-Term Investment Ideas for Savvy Investors, 1 Green Flag and 1 Red Flag for Microsoft's Future, 3 Top AI Stocks to Buy Right Now for the Coming Bull Market, Despite Its Falling 92%, Cathie Wood Is Buying More of This Growth Stock. This site is protected by reCAPTCHA and the Google If you wait for a pullback, the pullback might be from $400 to $350. With that significant weighting, investors might wonder if it's necessary to own Microsoft's stock by itself because most already have a healthy allocation to it through a 401(k) or index funds. On September 21, 2020, Microsoft announced its intent to acquire Zenimax Media and all its subsidiaries for $7.5 billion. You only owning a handful of shares when there is a billion (or more) shares outstanding doesnt matter. During the last day, the stock moved $3.45 (1.13%) between high and low. Amid that earnings report, Johnson & Johnson raised its dividend payment for the 61st consecutive year. All users should speak with their financial advisor before buying or selling any securities. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. And both companies face headwinds in 2023, as demand for their products and services softens during the economic slowdown. Software businesses with declining market share are risky today, too. These factors make it an especially attractive stock for investors seeing a balance between growth, cash returns, and moderate risk. Develop and improve features of our offerings. Yet Apple and Microsoft remain growth stock stalwarts. That rating indicates institutional buying of MSFT stock. Plus, Microsoft ranked first on IBD's 2021 list of ESG stocks for investors investors focused on environmental, social and governance issues. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. Data by YCharts. Microsoft's leadership positioned the company -- and its investors -- to profit handsomely from these trends. But Microsoft is also seeing weaker demand for productivity software and video games. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. In Q3 2022, AWS revenue grew 27.4% year over year to $20.5 billion, while operating income rose 10.6% to $5.4 billion. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Strong Buy to a Buy candidate. Today, Gates is worth about $106 billion after having donated more than $59 billion to the Gates Foundation. Billionaire tech magnate and investor Bill Gates is betting on these stocks. To buy MSFT, you'll need an account with an online brokerage or investment app. Earnings are also expected to improve only slightly to $9.33 per share from $9.21 per share in fiscal 2022. With the "crypto winter" talk dying down and digital assets heating up, here are the top cryptocurrencies to buy now. Recent Trends And 2023 Outlook. Systematic retrieval of data or other content from StockInvest.us, whether to create or compile, post to other websites, directly or indirectly, as text, video or audio, a collection, compilation, database or directory, is prohibited absent our express prior written consent. Bill Gates and Paul Allen started Microsoft in 1975 at the dawn of the personal computer era to make PC operating system software. In 2021, Microsoft entered the digital advertising market by acquiring Xandr. The weak PC market is wreaking havoc on Microsoft's revenue. Both companies face economic pressures in 2023. Microsoft wins for its lower Uncertainty Rating because were more confident in our fair value estimate of that stock. Just figure out how large you want your position to be, then drip invest into it to catch the average. Software giant Microsoft (MSFT) has earned plaudits for its successful pivot from desktop computing to cloud computing. Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Given the outlook, Morningstar lowered its fair value estimate on Microsoft stock to $310 from $320 per share. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. MICROSOFT CORP. (MSTR) As the penetration of AI-led technologies is increasing day by day, the dependence of corporate success on AI is also widening. Terms of Service apply. I have stated my case about J&J many times over the last two months or so and the recently updated information gives me very little reason to change that stance. Currently, Microsoft Corp's price-earnings ratio is 33.3. Why Sony Stock Is a Buy for 2022. Since its CEO Satya Nadella took the reins in 2014, Microsoft has become a true force in the tech world. It was a unique circumstance and Microsoft eventually found its groove, but that is always a risk to keep in mind with buy and hold stocks. OpenAI is the organization behind text generator ChatGPT and image generator Dall-E. Microsoft previously had invested in OpenAI in 2019 and 2021. So let's see if Microsoft can accomplish that feat, as the answer may surprise you. These mutual funds from Charles Schwab offer a combination of broad diversification and low fees. The average twelve-month price prediction for Microsoft is $322.88 with a high price target of $370.00 and a low price target of $232.00. *Average returns of all recommendations since inception. Given the current short-term trend, the stock is expected to rise 16.44% during the next 3 months and, with a 90% probability hold a price between $318.99 and $358.62 at the end of this 3-month period. For the upcoming trading day on Tuesday, 2nd we expect Microsoft Corporation to open at $306.44, and during the day (based on 14 day Average True Range), Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Macroeconomic headwinds have hit the company hard over the last year. To make the world smarter, happier, and richer. Additionally, the company has cleverly positioned itself as an essential component of businesses all around the world.
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