Will Microsoft Stock Trend Higher?
With shares of Microsoft (NASDAQ:MSFT) trading around $33, 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 founder Bill Gates is being called upon to resign as chairman by three of Microsoft’s 20 biggest shareholders, according to people familiar with the matter who spoke to Reuters. While CEO Steven Ballmer has been criticized for years for his inability to improve the company’s performance, this is the first time shareholders have come out and criticized Gates himself, who remains a highly respected figure in the tech industry, Reuters reports. The three investors believe that Gates’s presence will prevent a new CEO from making the substantial changes Microsoft needs.