Microsoft Corporation (NASDAQ:MSFT) is ancient as far as tech companies go. However, it is not easy to finds firms that keep their relevance and profitability thriving better than Redmond. The Windows company offers the best of both worlds; all things old and new under one roof. This article is all praise and worship regarding the company famously founded by billionaire Bill Gates.
Under CEO Satya Nadella, it continues to thrive in the modern day. There is no ceiling in sight either. The next decade of Windows solutions appears to be just getting started.
The facts can be laid down bare. Microsoft is no longer an on-premise software giant but a formidable cloud juggernaut too. The company is also putting its foot down in the hardware space. While analysts can agree that there is room for improvement with its gadgets business, its Surface products repeatedly secure rave reviews. Loyal investors see great returns from Redmond too. Since 2015, stock value climbed 58 percent.
Much of Wall Street is certain that the makers of the Windows operating system can push out double-digit dividends for the next ten years. In fact, the firm ranks among the most rewarding stocks people can get their hands on. The Dividends Achievers group backs this sentiment, which is made up of 265 members. The group lists the most rewarding stocks worldwide. Its companies declared increased dividends for shareholders for more than ten years.
Microsoft Corporation has a powerful central business model. Its management also directs the company further into markets that prove lucrative and sustainable. Azure can’t go without mention at this point. It has climbed to the second most widespread public cloud vendor. Looking back, investors cite a whole year of growth for the intelligent cloud service. Around 100 percent in sales growth was derived over the last 12 months.
Love Microsoft Corporation for its success
The words “growth” and “Microsoft Corporation” (NASDAQ:MSFT) ought to be synonymous for investors. The company came a long way from what it was back in 1975. Back then, it was founded with the promise being of the best computer OS around.
That promise was fulfilled and today it operates in 190 nations. Windows is so dominant in fact that Microsoft has faced several lawsuits for monopolistic practices. The Windows company has diversified a lot since its founding era and now investors no longer need to wait for software updates to see increased sales.
The company is split three ways now according to its own reports. Microsoft consider Intelligent Cloud, More Personal Computing and Productivity & Business Processes as its core businesses now. No business unit is overly dominant either, with the young Azure now rubbing shoulders with more established MSFT products.
Understand the Microsoft Corporation cloud (MSFT)
The realm of personal computing has aged into something widespread and arguably worn out. That said, Microsoft continues to mine success from the market. This is thanks to the success of the Surface hardware lineup and its gaming hardware. The “More Personal Computing” includes Windows, Surface, and their XBox-related ventures.
Pushing the Office 365 products into a more subscription-intense sales model was a great move for Microsoft. These products fall under “Productivity and Business Processes” along with the firm’s Dynamics solutions. It also houses the company’s biggest acquisition ever, LinkedIn, which the company promises to turn into a thriving success.
For those wondering where the fast-growing Azure fits in, it falls under and leads the “Intelligent Cloud” segment. By combining AI with superior cloud infrastructures, MSFT has pushed this unit’s growth in leaps and bounds. The business unit also accounts for several products, other cloud services and enterprise solutions. It is the fastest growing business under of Microsoft Corporation umbrella today.
MSFT: The good and the bad
Microsoft was just a software major when it began. The company is now a cloud giant and will remain so for the foreseeable future. There is no actual ceiling for cloud growth yet. Investors can also rest assured that MSFT will push its Azure platform into every business sector to derive the most from its appeal. It stands clear that there is a lot of excitement behind the Microsoft Corporation cloud business. This is especially true when considering Azure and is nearly 100 percent rise in revenues last quarter.
Of course, MSFT does not run in the land in the land of milk and honey. The firm has its own shortfalls like every other company. For the Redmond firm it is the fall of the desktop computer as everything becomes mobilized and cloud-based. The company is clearly adapting though, but that doesn’t mean dips in PC sales won’t hurt its bottom line.
The company is also yet to make a smartphone that sells. Rumors suggest a Surface Phone is in the works which could be its salvation. However, investors scarcely think a product like that will sell. The underlying problem is the perception of the Windows Mobile OS. Without apps and poor maintenance, it ranks among the most repulsive smartphone platforms.
Final thoughts? Microsoft Corporation (NASDAQ:MSFT) is here to stay and thrive. Its dividends pushouts have grown for 14 years in a row as proof of growing relevance and profitability. Investors do not wish to miss out on the company’s cloud surge either, which will grow to be its core business in years to come. Shares? They are growing in value too, slowly but surely. All of this makes the Windows firm a winner in my opinion.