Microsoft Stock (MSFT): Is It A Buy, Hold Or Sell Right Now?

The software giant has earned massive success over the past few years; But is MSFT still a good buy?

Last Updated March 24th 2022
4 Min Read

With the recent market sell-off in technology stocks, several investors are looking at the large-cap tech giants for their portfolios. Microsoft has earned plaudits for its successful journey from desktop computing to cloud computing. The price of MSFT stock has risen significantly as a result of this. But is MSFT a buy, hold or sell right now? Let’s see. 

Microsoft - A Market-Beating Stock For A Reason 

Microsoft would continue its winning ways in 2022 with the help of continued cloud adoption, making MSFT a good buy now. 

Microsoft has several high-growth products and services, which it broadly groups into three segments; productivity and business processes, intelligent cloud, and more personal computing. All three divisions contribute equally to the double-digit revenue growth in Q2. 

MSFT posted its second-quarter earnings report earlier this year, and the tech giant easily beats analysts’ expectations with a tremendous price rise. Microsoft stock price has been on a roll, and analysts suggest that it is best to hold your MSFT shares now.

Moreover, it has proved itself as a safe and durable grower, and arguably MSFT is the best tech stock to own for long-term investors. 

The Road Ahead For Microsoft

Since Microsoft’s largest segment is growing the fastest, it would be best to hold MSFT stock for the future.

With the expansion of cloud activities, Microsoft’s customer roster will grow massively in the future. The company expects its total revenue to rise around 16% to 18% year over year in the third quarter. Moreover, by ranking second in the cloud sweepstakes, the company is fast closing the gap with the market leader Amazon.com. 

Microsoft already has a good corporate client base for its on-premise productivity software and data management solutions. This would further grow in the future, as they migrate towards the cloud, making MSFT a good investment option now. 

The Tremendous Growth Of Its Cloud Platform 

Thanks to the move towards cloud deployment, Microsoft is one of the best tech stocks to invest in now. A major part of its price growth is contributed by the growth of its cloud division, Azure. The long-term trends for Azure look bright, and its market is expected to hit $1 trillion by 2030. 

Don't Miss: Microsoft (MSFT) Stock Price Prediction

Latest Product Updates And Coalitions

Microsoft’s cloud offerings include Azure infrastructure services, Office 365 productivity software, and Dynamics enterprise software. Lately, Microsoft has been promoting the metaverse, an immersive, next-generation version of the internet. The company is designing HoloLens mixed-reality headsets for remote collaboration.

Additionally, in January, Microsoft announced a deal to buy video game publisher Activision Blizzard (ATVI) for $68.7 billion. This will eventually accelerate the growth of its gaming business and offer building blocks for the metaverse. 

Is MSFT Stock A Buy, Sell, Or Hold?

Analysts predict a positive outlook for the tech giant in the future, making MSFT a profitable investment now. 

The Microsoft Office Commercial revenues have solely risen by around 14% year over year, which includes the productivity and business processes segment. The Dynamics has shown a growth of 29%. These unprecedented lines of gains would continue even in the future, making Microsoft one of the top tech stocks to buy in 2022. The industry-wide transition toward cloud computing, which has just begun, is yet another growth driver that boosts the price of MSFT shares in the future. 

A Stock Worth Watching - Now And Always

Investing in MSFT now could generate massive returns for investors over the long run. 

The year-over-year expansion of Microsoft is outstanding. Over the past year, the company has notably ramped up its investments in its cloud engineering, sales, customer deployment, gaming, and Linkedin segments. Moreover, the operating margins are also expected to rise slowly for the year, and earnings per share would grow about 15%. This will help the company achieve sustainable double-digit growth ensuring free cash flow, making MSFT a stock worth keeping an eye on. 

Moreover, investors are curious to know whether Microsoft is a buy, hold, or sell right now. The company would continue to expand its market share into new areas of the digital economy, like cloud computing and artificial intelligence in the future. It will also maintain its leading position with legacy software products, making MSFT one of the best tech stocks to buy now. 

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