Even though Microsoft stock price is one of the best-performing stocks in the market, investors still have questions about its future. This article will discuss some critical factors that may affect the MSFT stock price shortly. These factors include technical analysis, fundamentals, environmental score, and short-term and long-term stock price predictions.
Fundamentals
Considering that Microsoft makes one of the most ubiquitous computers on the market, it’s no wonder the company has a massive market cap of over $2 trillion. In addition, the company has expanded into server software, internet services, and, most recently, video games. The company is also making the HoloLens, a mixed-reality headset, on its way to becoming the next big thing in the VR (Virtual Reality) space.
While Microsoft is a household name, the company hasn’t been shy about competing with its competitors in the cloud computing space. Microsoft has also been making waves in recent months with its new HoloLens and Windows 10 mobile operating systems. As the industry evolves, it’s no wonder that Microsoft has seen a substantial increase in revenue.
Technical analysis
During the past year, Microsoft Corporation (MSFT) has been on a bullish run. This is due to the company’s successful pivot from PC operating systems to cloud computing and video games. The company is also expanding into other markets, such as the Internet.
The company recently announced a $19.7 billion deal to buy Nuance Communications, a leader in voice recognition and conversational artificial intelligence. This will boost the company’s presence in the healthcare sector. The transaction will also give Microsoft more exposure to the video game industry.
A technical analysis of Microsoft’s stock price will examine the company’s recent history and look for trends that will determine the future direction of the company. This includes evaluating market volatility, liquidity, profitability, and growth potential. It should also measure the company’s solvency and financial leverage.
MSFT’s performance in the last year
Despite the sluggish macro environment, MSFT’s performance in the last year is impressive. Microsoft is well-positioned to benefit from the growing cloud computing industry. In addition, the company’s broad digital transformation provides a solid foundation for long-term growth.
The company’s cloud business continues to increase. The overall cloud business has 81% operating margins. In the September quarter, cloud revenues exceeded $25 billion for the first time. In addition, office Commercial products and cloud services increased by 20% to $14.7 billion.
In the quarter, Microsoft won record-sized contracts. The company also added new data center regions in 15 countries on five continents. These new additions will increase the company’s lucrative portfolio.
MSFT’s operating income increased by 32%. The company expects double-digit operating income growth in the fiscal year 2022.
MSFT’s environmental score
Among the world’s 2,360 public companies, Microsoft is the leader in its environmental score. Its Dow Jones ESG score is 76.3. This is an imposing number for a company that is in the software industry.
Microsoft has consistently produced detailed sustainability reports. These reports use the Global Reporting Initiative Sustainability Reporting Standards. This report is designed to help investors determine the appropriate investment strategies.
The Environmental score is an excellent indicator of the company’s commitment to addressing climate change. For example, the company plans to be “carbon negative” by 2030. It is also planning to clean up its carbon footprint at home base and throughout its supply chain.
A low score indicates that the company has the resources to address these challenges. For example, Microsoft is working to increase the use of renewable energy in its operations. The company is also committed to the humane treatment of employees.
Short-term and long-term MSFT stock price predictions
Using Microsoft’s (MSFT) stock price predictions for the short and long term, investors can better evaluate the company’s prospects. They should be aware that these predictions are purely speculative and they ,may or may not be accurate. Nonetheless, they should be helpful in making an informed investment decision.
For the past five years, MSFT has been on an upward trajectory. This upward movement will continue into the next five years. Eventually, the stock will break through $300 and continue to rise.
The average of 38 analyst forecasts suggests that the company’s share price will be around $411 in the short term and $700 in the long term. The 5-year estimates look optimistic.
For the first half of the year, the stock price is expected to reach $557. The share price will be slightly higher by the end of the year. The cost of the store will gain slightly in 2029.
