Technology super giant Microsoft Corporation (NASDAQ:MSFT) is a market mover and has proven to be one of the best investments an investor could have made in recent years. With the company's valuation climbing ever higher, even as earnings continue to climb into lockstep, investors will, at some point, begin to question how much upside could be left at these levels, given the severe economic weakness we've seen materialize (which has been largely offset by government stimulus to date).
Microsoft's outsized returns relative to its peers and the broader stock market can be linked to the acceleration of secular growth trends which have supported the company's business model for decades. One analyst recently referenced the idea of two years’ worth of digital transformation taking place over two months due to the coronavirus outbreak and a fundamental shift toward technologies supporting the work-from-home, and increasingly digital, environment.
As it is, Microsoft's entire business is built on providing products and support for tools to make this transformation easier. Whether in the form of video conferencing technology like Teams or Skype, cloud computing services of which Microsoft is a key player, or gaming revenue via the company's Xbox exposure, a consumer stuck at home is a consumer using Microsoft products, and with increasing quantity and voracity. The company has already seen a 60% year over year growth in some of its segments, due in large part to an acceleration of this shift that was already underway.
Invest wisely, my friends.
Tech Insider
