Will Microsoft Continue This Bullish Run?
With shares of Microsoft (NASDAQ:MSFT) trading around $35, is MSFT an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Microsoft is engaged in developing, licensing, and supporting a wide range of software products and services. The company also designs and sells hardware and delivers online advertising to customers. It operates in five segments: Windows and Windows Live, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices. As a mature company, Microsoft is also offering a stable dividend, which is currently yielding around 3.32 percent annually.
Microsoft reported that earnings in the third quarter rose 17 percent from the year ago period, wildly beating out analyst expectations and causing a flurry of after-hours trading in the company’s shares. Steve Ballmer, the CEO of Microsoft, said that he is happy that there is a lot of consumer excitement over products such as the Xbox 1 and Surface 2, which could help boost the company’s sales looking ahead to the holiday season. The company’s stock has risen about 6 percent before the opening bell.