Is It Time to Buy Microsoft Stock?
Microsoft (NASDAQ: MSFT) recently released sluggish results for its fiscal 2023 second quarter. For the period that ended Dec. 31, its revenue growth rate decelerated to a mere 2% year-over-year and net income fell by 12%. Free cash flow also dropped by 43% to $4.9 billion.
Demand for its personal computing devices returned to pre-pandemic levels -- a trend that's expected to further accelerate in 2023. Corporations have been tightening their budgets, which seems to be affecting demand for Microsoft's Azure cloud services. Management has also predicted a weak growth outlook for Azure in its fiscal Q3, which seems to be weighing on investor sentiment.
Despite these challenges, there are many factors in favor of the tech behemoth. Let's assess whether these factors make Microsoft stock a buy in early 2023.
Source Fool.com
