Should You Buy Microsoft Ahead of Earnings?

Microsoft (NASDAQ:MSFT) stock has climbed 38.3% in 2019 as of close on October 11. The company has posted impressive gains in market-share for its cloud product, Azure. Microsoft is also making aggressive plays in e-commerce software, cybersecurity, and hardware. In 2019 Microsoft pushed its market cap above the $1 trillion mark.

The Windows-based Surface Neo and Android-based Surface Duo are part of a push by Microsoft to redefine the hardware market. These are not due for release until the 2020 holiday season, but there is considerable hype surrounding their launch. Information is still sparse, but the sneak peak showed hardware that was “a little bit of a tablet, a little bit of a phone” according to Larry Dignan from ZDNet.

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Surface devices have been hyped to support user “flow” that will provide a middle ground between a tablet, a PC, a laptop, and a phone. Consumers have been piling up devices over the past decade. This attempt to redefine the market offers the potential for an all-in-one product. This is a launch worth monitoring as we look ahead to late 2020.

Microsoft is set to release its first quarter results on October 23. The stock possesses a price-to-earnings ratio of 29 and a high price-to-book value of 10. Microsoft is a great white in the tech sector and its upcoming hardware launches in 2020 have the chance to be real game changers. I’m looking for an entry point before this year comes to a close.