Microsoft (NASDAQ: MSFT) isn't posting the same type of blockbuster growth metrics that investors celebrated in 2021. The software giant's latest earnings report showed weakening sales in a few key niches. Profits fell, year over year.

But that decline is no threat to Microsoft's long-term outlook, which is bright, thanks to a multiyear shift toward cloud services, hybrid work, and digital entertainment. The company maintains huge competitive advantages here, along with killer financial assets, that make it an attractive holding for investors seeking a balance between growth and direct cash returns.

The fiscal Q1 period was rocky, but the performance showed off why investors love the company's diversity. Microsoft grew sales at just a 16% rate after accounting for currency-exchange rate shifts. That expansion pace is down from about 20% in early 2022.

Continue reading

Source Fool.com