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Investors Should Continue Betting On Microsoft for the Long Run

August 22, 2014 | About:

With a freshly stamped CEO in charge, Microsoft (NASDAQ:MSFT) is on a solid run this year. The stock is as of now up more than 13% as a result of its impressive strategies and consistent performances, as Microsoft has beaten earnings estimates for 75% on the jog. Presently, considering Microsoft's impressive valuation and the way that it looks set to enhance further, it should have the capacity to sustain its strong run. Indeed, Microsoft is doing admirably despite weakness in the PC market, and its attack into developing technologies is the right move.

Showing signs of improvement

As indicated by Satya Nadella, Microsoft CEO, "It is vital and important to see the organization with a fresh perspective to get grounded both our current realities and future opportunities." As a result, Microsoft is striving for an altar of course, which is presumably the reason behind investors' enthusiasm.

Indeed, Microsoft is now outlining strategies in different areas that include cloud services, Windows and Bing. In the second-from-last quarter, its cloud services revenue multiplied as contrasted with last year, principally determined by a strong performance from Office 365 and Azure.

In addition, Bing saw change in the online search business, with its U.S. search share developing to 18.6% and search revenue increasing by 38%. Bing's enhanced performance was a result of Microsoft's creative moves.

Cloud investments

What's more, Microsoft will continue investing in its cloud capabilities. These include Office 365 and Azure in the fast developing software as a service and cloud stage markets. The organization is attempting to make its cloud services accessible across all gadget platforms.

This is a classic illustration of what Microsoft is attempting to do – getting comprehensive solutions with the cloud, keeping in mind the end goal to quicken reception of its products.

Besting the opposition

In any case, Microsoft faces rivalry from different companies such as Dropbox, which is rivaling it in the distributed storage space. The online record sharing organization has picked up solid footing in the past few years. Also, Box is an alternate opponent in this space, which is more focused to corporate customers who request more prominent levels of administrative control and security. Thus, Microsoft may have an intense time in the cloud space.

In any case, Microsoft is not sitting unmoving. It as of late made its online storage solution more moderate with a value cut and an increase in limit.

Plainly, Microsoft is leaving no stone unturned to impose its predominance, and moves such as this should permit it to bring more users into its ecosystem. The organization will keep focusing on two key areas to enhance its business going ahead. As indicated by Nadella:

"In the months ahead, we will keep on being intensely focused on two things: rock-solid execution and rotating the organization towards what's to come. We will keep on pushing hard and move rapidly and you will see the evidence of that quite a long time in the products and services we manufacture for the portable first, cloud-first world. We will be strong in our advancement. We will be responsible to our customers, partners and shareholders."


Microsoft has a great deal of cash that it can use to further its advancement. As per Yahoo! Money, Microsoft has cash of $87.7 billion, and its obligation position is generally reasonable at $23.48 billion. As such, a strong fiscal position should permit Microsoft to proceed with move into the cloud and proceed with its resurgence.

Rating: 3.0/5 (2 votes)



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