Microsoft Corporation (MSFT): Cloud and Gaming Are the Reasons to Buy the Stock

Microsoft (NASDAQ: MSFT) is gaining value after the stock was given an “Overweight” rating by investment firm Atlantic Equities. The firm is bullish on the stock amid Microsoft ’s growth potential of Azure Cloud platform. Atlantic Equities expects that the Redmond company’s Cloud business will be able to reach $115 billion in revenue in the next decade.

In June, Morgan Stanley analyst Keith Weiss also said that Microsoft has gained a strong footprint in the gaming industry. Weiss called Microsoft the “Netflix” of the gaming industry.

Over the current book year the total revenue will be 109,52 billion USD (consensus estimates). This is rather significant more than 2017's revenue of 89,95 billion USD.

Historical revenues and results Microsoft plus estimates 2018

The analysts expect for 2018 a net profit of 29,86 billion USD. The majority of the analysts expects for this year a profit per share of 3,84 USD. Based on this the price/earnings-ratio is 25,98.

For this year the analysts expect a dividend of 1,67 USD per share. Thus the dividend yield equals 1,67 percent. The average dividend yield of the software & services companies equals a low 0,5 percent.

Latest estimates around 94 USD

Nomura Securities, Jefferies & Co. and Citigroup recently provided recommendations for the stock.

Microsoft 's market capitalization is based on the number of outstanding shares around 778,93 billion USD.

At 16.44 the stock trades 0,57 percent higher at 99,76 USD.

Historical stock prices Microsoft

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