Microsoft Stock Is Excelling in 1 Area. But Is It Enough to Buy the Stock?
Microsoft (NASDAQ: MSFT) has been one of the top tech names to own over the past five years. The stock steadily marched up, with few dips in the middle. A lot of that rise is tied to one part of its business: Azure. Azure is Microsoft's cloud computing wing and consistently delivered quarter after quarter of growth in the high 20% range. If you're a Microsoft investor, your bull case centers around Azure growth.
However, focusing on Azure has caused Microsoft's stock to rise to an expensive valuation level. So, is the stock even worth buying today? Or has the easy money already been made?
Cloud computing is the practice of offloading some workload through the internet to an offsite data center with significant computing power. By choosing to use cloud computing instead of traditional on-site computing, companies can easily scale up or down their usage and computing power. For example, clients who want to train an AI model can access thousands of Nvidia GPUs in an Azure data center. Then, once that training session is complete, they no longer rent the computing power.
Source Fool.com
Microsoft Corp. Stock
With 111 Buy predictions and 1 Sell predictions Microsoft Corp. is one of the favorites of our community.
As a result the target price of 424 € shows a slightly positive potential of 13.92% compared to the current price of 372.2 € for Microsoft Corp..
