From their continued gains in the stock market to their $143 in revenue over the last fiscal year, the company has had one lucky break after the other. Not to mention, their operating income nearly doubled over the past three years from $35 billion to almost $53 billion.
In fact, Microsoft has generated a total whopping return of 400% over the last five years. This is largely due to their “Mobile first, cloud first” strategy that has seen the expansion of various cloud services, their PC software, and even their Xbox gaming console.
Their commercial cloud revenue alone topped $50 billion in fiscal 2020, accounting for almost one-third of Microsoft’s total revenue.
All of these factors came together to bolster the company through the pandemic. Whether you worked, played, or relaxed at home, Microsoft had a product for your pandemic blues.
Now that the initial shock of the pandemic is over, however, Microsoft needed another way to push forward in the last quarter of 2020.
The company met this challenge with the announcement that their Series S and Series X Xbox systems will go up for sale next month.
Their recent acquisition of ZeniMax – the producers of such franchises as The Elder Scrolls, Fallout, and Wolfenstein – has further helped them capitalize on the gaming market.
But what does this mean for their stock prospects?
Q.ai might be able to answer that. Our AI (Artificial Intelligence) is here to provide you with a more in-depth look at Microsoft for the month of October, so you don’t have to do the digging yourself.
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Microsoft Corp (MSFT) By the Numbers
Microsoft Corp closed down 0.9% on Wednesday, ending the midweek at $220.86 on volume approaching 23 million trades.
While closing down is never a company’s ideal, overall Microsoft has enjoyed an excellent start to October.
They have seen continual gains in their stock prices month to month since they bottomed out in March, with the first ten days of October averaging out to $213.63, compared to the 22-day average of $209.18.
Overall, the stock is up almost 38.6% for the year, in spite (or rather, because of) the pandemic.
Microsoft has also reported a solid EPS for the last fiscal year, coming out to $5.76 compared to a paltry $2.13 three years ago.
The company’s ROE has almost doubled in the same time frame as well, leaping from 19.5% to 40.1%.
Currently, Microsoft is trading with a forward 12-month P/E of 34.23.
So, What’s the Verdict?
Our AI has crunched the data from Microsoft and graded the company above average. While Microsoft receives a C in both Technical and Growth, it has also earned an A for Low Volatility Momentum and a B in Quality Value.
Due to our AI’s report card, as well as the company’s potential for increased performance throughout the next few months, Q.ai has rated Microsoft Corp Attractive once more for the month of October.
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