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MSFT Stock Price will Continue its Bull Run?

MSFT stock price has risen over the years. As a result, stock prices could rise by more than 23% to over $ 275. Big stakes follow quarterly performance better than the company expected. Microsoft will continue to grow strongly thanks to its great growth engine, the Intelligent Cloud Business Unit. The release of two Xbox Series X specific games has been delayed, but we’re investing in long-term gaming potential. As Sony and Amazon step up their efforts, it is important for Microsoft to identify future challenges and respond to them.

Although several PlayStation consoles have become bestsellers, Xbox sales remain relatively weak. In the past, Sony has owned multiple game studios offering more exclusive launches and access to better titles. This can pose a problem for the company. However, in the first quarter revenue increased by nearly 20%. Analysts currently expect revenue for the same division to grow nearly 16% in the second quarter. The company recorded high revenue growth. The performance of the company is expected to grow 11% annually in the upcoming time.

For investors looking for a stable tech name to build their portfolio with, Microsoft has to be part of the equation. Estimates of these revenues have steadily risen and increased significantly after reporting the results. Very strong sales growth is expected in the coming years with an average annual growth rate of 14.5%. Microsoft Azure has been a major growth engine over the past few quarters, showing signs of bottoming out in the first quarter when it posted major growth. With sales and revenue growth, Microsoft has continued to grow and in the long run, it is now betting it might be better than expected.

That’s because Microsoft’s PE multiple is 29, which isn’t cheap and is close to its highest level in a few years. However, with the global launch of the next-generation Xbox console, Microsoft aims to increase its market share in video game consoles over competitors such as Sony Corporation SNE.  If the company continues to perform better than expected, analysts will increase future estimates and double revenue over time, unless the revenue growth rate is too slow.

Our Estimation

Based on the growth projection, we viewed that the bull run of the company will continue. Moreover, we also viewed that MSFT stock price will increase at an average of 16% per year for the next five years. More importantly, cloud growth is projected to grow by 10.7% in 2021, 11% in 2022 and 13% in 2023. This high tech company has seen a lot over the decades and I think any challenge lurking around the corner is fine. If you want to invest in this stock, you can check its releases at https://www.webull.com/releases/nasdaq-msft.

Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

Author Since: Apr 05, 2019

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