3 Red Flags for Microsoft's Future

Microsoft's (NASDAQ: MSFT) stock has rallied more than 730% since Satya Nadella took over as the tech giant's third CEO on Feb. 4, 2014. That massive rally, which boosted Microsoft's market cap from about $300 billion to nearly $2.3 trillion, was largely driven by Nadella's intense focus on expanding the company's cloud-oriented businesses.

Microsoft has also remained resilient over the past few months as rising inflation and higher interest rates rattled the broader tech sector. As a result, it remains a popular safe-haven stock for many investors.

I believe Microsoft is still a solid long-term investment with a reasonable path toward hitting a $3 trillion valuation in the near future. But before investors scoop up more shares of Microsoft, they should recognize these three red flags, which could disrupt the company's near-term growth.

Continue reading

Source Fool.com