Microsoft (NASDAQ:MSFT)’s Future Looks Brighter Than Ever


Microsoft (NASDAQ:MSFT) has been having a great year; its stock has been faring above everyone as far as the tech market is concerned, roaring by 24 percent. Now with the new Windows, Office and cloud to look forward to, Microsoft (NASDAQ:MSFT)’s future looks brighter than usual. This has been termed as a comeback for the company since last year it wasn’t doing well at all. In fact, this time the leading market company Google Inc. (NASDAQ:GOOGL) will also be wary of Microsoft (NASDAQ:MSFT). Will Microsoft (NASDAQ:MSFT) be able to carry this success to the next year?

Best thing about Microsoft (NASDAQ:MSFT) is its 2.6 percent dividend yield as compared to the rivals such as Apple (NASDAQ:APPL) and Google Inc. (NASDAQ:GOOGL) that are major companies yet their dividend yield is below 2 percent. That could be the deciding factor for the investors to have faith in Microsoft (NASDAQ:MSFT). Microsoft (NASDAQ:MSFT)’s PEG ratio tells you that the market expects the company to post a weaker bottom line growth than the competitors. The company’s return on equity isn’t bad at all either. Microsoft (NASDAQ:MSFT) also made a great move this year by finally getting rid of Windows XP which in turn made people emphasize upon Windows 7 and 8.

Microsoft (NASDAQ:MSFT)’s cloud based system is also gaining popularity in the market and that too, quite rapidly. In the last quarter, the renowned Office 365 got 7 million new subscribers. There was paranoia going around that Google (NASDAQ:GOOGL) drive would suppress Microsoft (NASDAQ:MSFT) but it’s evident now that that isn’t the case.

Microsoft (NASDAQ:MSFT)’s stock isn’t iron clad. Microsoft (NASDAQ:MSFT) is creating a ‘One Windows’ concept with Windows 10, in which its PCs, smartphone, tablets etc. will carry same windows. This might be a technique out of Google Inc. (NASDAQ:GOOGL)’s Android solution, but in order to tackle Google Inc (NASDAQ:GOOGL) and even nudge it off the top, Microsoft (NASDAQ:MSFT) will have to make its market share formidable.

Microsoft (NASDAQ:MSFT) has been constantly giving competition to Google Inc (NASDAQ:GOOGL). By launching low end Lumia Phones to tackle Android One, eliminating the license fee from Windows devices and free one year membership for Office 365, Microsoft (NASDAQ:MSFT) is proving to be a strong adversary for Google Inc (NASDAQ:GOOGL) and other rivals. In the last quarter Microsoft (NASDAQ:MSFT)’s CEO forecasted low guidance for the future.  On top of that, Microsoft (NASDAQ:MSFT) also has to pay 500 million in reconstructing expenses.

Investors should swarm around Microsoft (NASDAQ:MSFT)’s stock. It has a great dividend yield, which matters the most than everything- It has strong valuations, the company is loyal to its cloud and Microsoft (NASDAQ:MSFT)’s Surface sales are rising too. Also the launch of Windows 10 will user a new era for the company. Investors should overlook Microsoft (NASDAQ:MSFT)’s bottom line hassle and get on-board because Microsoft (NASDAQ:MSFT) is a company in transition and there are many bright prospects to look forward to in the future. The next year performance will translate the actual direction the company is headed.