Microsoft's Down 21%: Is Now the Best Time to Buy?
Microsoft's (NASDAQ: MSFT) stock is down over 21% year to date as the COVID-19 pandemic continues to have lingering effects on supply chains and reopenings slow consumer demand. The issues have similarly affected multiple tech stocks. And yet, Microsoft investors have reason to be particularly bullish about the company.
In January, the tech giant began acquiring video game company Activision Blizzard (NASDAQ: ATVI) for a record $68.7 billion. The deal is undergoing scrutiny from regulators worldwide, but encouraging words from Microsoft's CEO of gaming, Phil Spencer, suggest the purchase will go through. If that's the case, Microsoft stands to become one of the world's top three largest gaming companies, which could mean its stock is an absolute bargain at its current price.
On Aug. 24, Microsoft's gaming CEO, Phil Spencer, gave an update on the purchase of Activision in an interview with Bloomberg, saying, "I feel good about the progress that we've been making" with regulators. He added, "[T]he discussions we've been having seem positive." While Spencer didn't give more specifics on the deal's status, the transaction's colossal size has put it under an intense regulation process where Microsoft must obtain antitrust approval before it completes.
Source Fool.com
