What is the most useful Microsoft software

Microsoft: The best software stock in the world

In view of the broad stock market and the high valuations, many investors are currently desperately looking for a suitable software paper for their portfolio. And that even though many of these investors, as Windows or Office365 users, are already Microsoft customers. For the SHAREHOLDER, Microsoft is still one of the best investments in the software industry.

All it takes is a look at the software giant's business figures to see why. The group has been able to grow in almost every segment since 2015 (see graphic).

Microsoft: sales development since 2015

Corona has positive effects

Particularly impressive: In the corona pandemic, Microsoft became a clear beneficiary due to its cloud strength and its gaming offerings. Because the crisis has massively intensified the digitization trend again. In the last quarter, the US group was able to increase the Azure Cloud by 48 percent compared to the previous year. The gaming revenues in the area of ​​the Xbox offer increased by 30 percent.

Record profitability

A look at net profit also speaks volumes. Since 2008 there have only been two quarters in which the group was not profitable. For three years, Microsoft has even been able to increase its profit significantly from year to year.

Microsoft: Net income per quarter since 2008

Almost all analysts recommend buying the paper

The operational strength of the software company is also underpinned on the stock exchange by the fact that loud Bloomberg not a single analyst recommends Microsoft's shares for sale. 36 experts are bullish for the share and only three are neutral.

THE SHAREHOLDER thinks: Investors should use the short-term sideways trend in Microsoft paper to get started. Invested do not give a piece of hand.

If you want to invest a little more broadly in Big Tech, you can take a look at the GAFAM index. The index published by the SHAREHOLDER includes the five largest US IT companies: Alphabet (Google), Apple, Facebook, Amazon and Microsoft. The shares are weighted equally annually in order to avoid cluster risks. However, dividends are not taken into account when calculating the index. The GAFAM index has risen almost 180 percent since it was launched - there are matching certificates from Morgan Stanley.

Note on possible conflicts of interest:

The author Emil Jusifov directly holds positions on the following financial instruments mentioned in the publication or related derivatives that benefit from any price development resulting from the publication: Microsoft.

Note on potential conflicts of interest according to §34b WpHG: The price of the financial instruments is derived from an index as the base value. Börsenmedien AG developed this index and holds the rights to it. Börsenmedien AG has concluded a license agreement with Morgan Stanley as the center of the financial instrument, according to which Börsenmedien AG grants Morgan Stanley a license to use the index. In this respect, Börsenmedien AG receives remuneration from Morgan Stanley.

Book tip: Hit Refresh

Who invented it? Microsoft. Long before the iPad or Kindle existed, Microsoft had already developed a tablet and an e-reader. Only: It had never used the products and fell behind against new innovators like Apple and Co. The solution: A complete overhaul - Microsoft developed a strategy that encompasses all areas of the company for the future handling of new technologies such as artificial intelligence and mixed reality. Using the example of Microsoft, "Hit Refresh" shows how empathy and energy can be used to get the best out of the possibilities of technical progress. Nadella connects the whole thing with his own fascinating life story and world of thoughts.

Authors: Nadella, Satya Nichols, Jill Tracie Shaw, Greg
Number of pages: 256
Release date: 05.03.2020
Format: Soft cover
ISBN: 978-3-86470-681-3