Better Buy: Zoom Video Communications vs. Microsoft

Zoom (NASDAQ: ZM) and Microsoft (NASDAQ: MSFT) were both well-insulated from the pandemic. Zoom's brand became synonymous with video conference calls as more people stayed at home, worked remotely, and took online classes. Microsoft's cloud, gaming, and Surface businesses benefited from stay-at-home trends, and offset the temporary disruptions of its enterprise-facing software businesses.

I compared these two tech stocks last August, and declared Microsoft's broader diversification, more reliable returns, and lower valuations made it a better investment. Both stocks have risen about 20% since I made that call, so there isn't a clear winner yet. Let's take a fresh look at both companies to see if my original call holds up for the rest of the year.

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Source Fool.com