Microsoft Corporation (NASDAQ:MSFT) was once the big tech stock on the scene, but over the years it has matured and developed into a solid blue-chip stock. While It may be tempting to invest in Amazon.com, Inc. (NASDAQ:AMZN) and its seemingly endless ascent in price, but with that success also comes volatility.
Tech stocks are certainly on the rise now, but we’ve seen crashes in the industry before and at sky-high valuations, they are the most vulnerable today. Amazon and Netflix, Inc. (NASDAQ:NFLX) both trade at more than 200 times their earnings and are very highly valued as investors keep expecting their growth to continue, although at some point it is going to have to slow down.
While Microsoft is not a cheap either, trading at more than 75 times its earnings, it is able to provide investors with more stability and consistent growth rather than the ups and downs that are experienced with riskier stocks.
Even though Microsoft is now the elder in the industry, its stock has risen more than 40% in the past year, well above Alphabet Inc (NASDAQ:GOOG), which has seen its share price increase by just 24%.
What might be most surprising is that Microsoft continues to find ways to grow. In its most recent quarter, sales were up 20% as it is inches closer to $100 billion in annual revenue.
The prevalence of its operating system in most work environments and with the company still commanding significant market share in the industry, Microsoft remains as safe a buy as you can find in the tech industry without having to pay an enormous premium or take on a lot of risk.
