Since its founding nearly 50 years ago, (NASDAQ: MSFT) has had monster success in tech. The software giant is the second-most valuable company in the world, with a market cap of $2.5 trillion -- only behind Apple.
Microsoft is home to some of the world's most popular brands, which has seen its annual revenue climb 68% over the last five years and operating income rise 106%. The company's vast resources have given it the funds to invest in up-and-coming markets such as artificial intelligence (AI). Microsoft was among the first to invest in the booming market, giving it a powerful position in the sector.
However, competition in AI is growing rapidly and could make it challenging for Microsoft to retain its dominance over the long term. So, before you load up on this tech giant's stock, it's smart to understand the positives and potential negatives of its business.
Source Fool.com