As Microsoft Corporation Soars, Is Now the Time to Buy?

After recently reporting stellar earnings at the end of last month, technology giant Microsoft Corporation (NASDAQ: MSFT) has continued higher on strong investor sentiment and fundamentals which appear to remain bullish for long-term investors who have held onto shares of one of the best technology companies in the world in recent years.

Microsoft’s record high share price has propelled its once-juicy dividend yield to well below the 2% threshold many investors consider to be reasonable for income-oriented investments. The company’s growth profile, however, has steered investors geared toward profit and long-term growth trajectories toward Microsoft, a company which has maintained a gigantic moat in the software space for decades.

The company’s $830-billion valuation makes it one of the most valuable companies in North American financial markets, and with fellow technology mega-giant Apple Inc. (NASDAQ:AAPL) finally crossing the psychological $1-trillion valuation barrier, Microsoft may not be that far behind, given the company’s outperformance and bottom line numbers.

Of note, Microsoft’s core segment (its productivity and business processes unit, which encompasses the company’s office suite of products), saw a double-digit revenue increase to nearly $10 billion. What many growth investors have been keeping an eye on, the company’s azure cloud segment, grew by nearly 90% year over year, an incredible jump, and an earnings beat which has excited many new investors who have piled into Microsoft at current levels.

While other technology companies may be cheaper on a valuation basis, Microsoft retains one of the top spots in my books for interesting long-term growth play, even at these levels.

Invest wisely, my friends.

Let's block ads! (Why?)