There are many advantages to investing in Microsoft stock. Its growth is not limited to office productivity software. The company also owns LinkedIn and Skype, and recently announced plans to acquire video game publisher Activision Blizzard. Its stock is not hyper-growth, but it is still profitable, with sales growing over 18% last year and profits topping $61 billion. For these reasons, buying Microsoft stock may be the best way to gain exposure to this technology giant.
The company is a blue chip stock, and it generates billions of dollars in profit annually. It has a solid balance sheet, and is expected to pay regular cash payouts to shareholders. Microsoft shares are still quite volatile, but their growth prospects are attractive. The company’s guidance may spur analysts to lower their estimates, but this should not deter you from investing in Microsoft. A few of the most notable risks are related to the stronger U.S. dollar, which could affect the company’s bottom line.
Before investing in Microsoft stock, you should first decide on how much money you can afford to risk. If you are comfortable leaving your money in a stock for a period of three to five years, it’s a smart choice. You can even choose to buy Microsoft stock fractionally. By using the company’s ticker symbol MSFT, you can easily buy up to 20 percent of its stock price in a single transaction. Its price is currently around $260 per share.
While the overall market has seen a drop of over 20% in the past two years, Microsoft is doing better than the other high-growth companies in the one-trillion-dollar club. Amazon, Tesla and Alphabet have all experienced significant year-to-date declines. However, with a stronger economy, a strong job market will boost Microsoft’s stock price. However, a large percentage of investors have become long-term shareholders in the company.
The company also has an impressive track record when it comes to software and hardware. The company’s Windows operating system and Office 365 application suite have been among the most popular productivity software in the world, and it is one of two major cloud providers. Microsoft’s products range from operating systems to cross-device productivity applications to server applications, software development tools, and mobile devices. The company is also involved in designing and selling games consoles, phones, and intelligent devices.