The company’s stock is up 30% year-to-date.
Microsoft has seen a huge turnaround in its stock over the last five years and according to some analysts, it will only continue to get higher. On Wednesday, Deutsche Bank raised Microsoft’s target price from $145 to $155 per share.
The company’s stock is already up 30% in 2019 and in April, it surpassed its $1 trillion market cap. Let’s look at a few reasons why Microsoft may be a good stock to invest in.
Reasons to invest in Microsoft
Years ago, there was a growing consensus among Wall Street analysts that Microsoft was growing stale and irrelevant. Then in 2014, the company brought on Satya Nadella as CEO.
Over the past five years, Nadella has made a number of decisions that have changed public perceptions of Microsoft. The company’s stock has shot up more than 250% and Microsoft is once again seen as a leader in the tech industry.
Microsoft made several strategic moves during that time. First, it began focusing on offering cloud services. Microsoft’s cloud revenue has risen substantially and at the rate that cloud computing is being adopted, the company has a lot more room to grow in this area.
And in recent weeks, there’s been a lot of buzz about Microsoft’s newest Xbox console, named “Xbox Scarlett.” It will have a solid-state drive (SSD), use ray-tracing technology, and support 8k resolution graphics.
And the company is also launching a new video game streaming service, called Project xCloud. The service uses Azure cloud hardware and is positioned to compete with Google’s Stadia.
Microsoft already beat Amazon and Google as the first cloud provider to open a data center in the Middle East. However, the company does trail behind Amazon in terms of growth in the cloud industry.
But unlike Amazon and other big tech companies, Microsoft isn’t dealing with any federal investigations. The company has already gone through its own antitrust investigations but it is past all that.
Over the years, the company has proved itself to be resilient and able to withstand competition from newer rivals. If it can continue to reinvent itself and adapt to changing trends in the marketplace, Microsoft should be a solid investment.