In recent months, inflation, rising interest rates, and investor sell-off have contributed to tech stocks’ declines. Investors are now more cautious, but the top tech companies don’t suffer for too long. Microsoft (NASDAQ MSFT ) is a profitable, long-lasting company. MSFT stock is the best option to add to your portfolio.
Stock is currently trading at $300 per share for the week, lower than its 52-week high of $349. MSFT stock is currently trading at $279, which looks quite valued. The company’s momentum will continue, and MSFT stock is currently trading at $279. This is a solid opportunity to own this top tech stock.
MSFT Microsoft $279
Multiple revenue streams
Microsoft’s ecosystem is unavoidable. Microsoft is a leader in all areas, from its operating system for PCs to Azure and the cloud infrastructure platform. Microsoft could soon be one of the top game publishers worldwide.
The company’s multiple revenue streams are a huge reason to invest. It is positioned in the personal computer, metaverse, and cloud segments. Even if one sector’s revenue is lower, other sectors will compensate. Microsoft’s unique approach to innovation is also a key reason for its success. Microsoft continuously updates and upgrades its products and ensures they don’t become outdated.
The gaming Segment offers a huge opportunity.
Microsoft is already present in the gaming sector, and the global gaming market will surpass $200 billion in the next year. This market has grown significantly since the pandemic. It already features the venerable Xbox console, boasting exclusive blockbuster titles like Gears of War 5.
Microsoft announced that it would purchase Activision Blizzard (NASDAQ: ATVI). The acquisition will be worth $68.7 Billion. With $8 billion in revenue, Activision is the second-largest game studio worldwide. It also owns the top-selling gaming titles Candy Crush and Call of Duty. Microsoft will acquire these top-selling titles with millions of gamers around the globe.
The company plans to fold Activision’s product lines and lure its gamers into its monthly gaming subscription, Games Pass.
The Bottom Line for MSFT Stock
The stock’s recent decline is not due to factors outside of the company’s fundamentals. Microsoft is a trusted name in the market and has been around for a long. This stock is also a dividend-paying business, so this is a great opportunity to purchase it. MSFT stock is fairly priced and may not trade at this price shortly.
Microsoft faces a lot of competition in the market, but it will not slow down. Microsoft is strong with the Activision acquisition and its solid user base. MSFT stock generates passive income by paying regular dividends. The stock has a 0.9% dividend yield and pays $2.48 per share in annual dividends. It has seen an increase in revenue and earnings year-over-year and boasts solid fundamentals. MSFT stock is the stock to own and keep beyond this year.