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Will Palantir Be a Trillion-Dollar Stock by 2040?

4 years 10 months ago
Palantir Technologies (NYSE: PLTR) has been a volatile and polarizing investment since its direct listing last September. The bulls claimed its data-mining platforms would continue to grow as it signed more government and enterprise contracts.
The Motley Fool

Notable Wednesday Option Activity: COO, J, MSFT

4 years 10 months ago
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Cooper Companies, Inc. (Symbol: COO), where a total volume of 1,647 contracts has been traded thus far today, a contract volume which is representative of approx
BNK Invest

MSFT January 2022 Options Begin Trading

4 years 10 months ago
Investors in Microsoft Corporation (Symbol: MSFT) saw new options become available today, for the January 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the MSFT options chain for the new January 2022 contracts and identified one put
BNK Invest

Microsoft Stock Is a Powerful Cloud-Market Runner

4 years 10 months ago

Microsoft (MSFT) provides software, cloud, and other computing services worldwide. I am bullish on the stock.

Back in the old days, Bill Gates and Microsoft were emblems of the future of operating systems.

Windows is still a popular operating system, but today, Satya Nadella is Microsoft's chairman and CEO.

Moreover, Microsoft is evolving into a cloud company, slowly but surely. It's a necessary move as computer software has evolved quickly.

As we'll see, MSFT stock reflects Microsoft's continued growth and evolution. (See Analysts’ Top Stocks on TipRanks)

A Quick Look at MSFT Stock

2021 has been a terrific year for Microsoft's shareholders, to say the least.

The stock has been unstoppable, even despite the global microchip shortage that's been going on.

Perhaps nothing can stop MSFT stock, as it just recently printed a 52-week and all-time high of $336.58.

That's amazing when we consider that the stock started off 2021 at $218.

It's a good thing that MSFT stock has moved to the upside, as it's not much of a dividend payer, with a forward annual yield of just 0.7%.

Still, that's just the icing on the cake for Microsoft's loyal shareholders.

Really, share-price appreciation is the key to generating returns in MSFT stock. Given the current momentum and trajectory, $400 should be an easy target in the near future.

A Time of Transition

Microsoft is undergoing a number of changes. We already alluded to Nadella becoming the face of the company, as well as Microsoft's move into the cloud.

The broader economy, and the technology sector in particular, are also going through changes.

For one thing, the COVID-19 pandemic has accelerated cloud adoption. Also, businesses and consumers have had to adjust to rising inflation as well as a microchip shortage.

Nadella actually envisions Microsoft as a company that can help businesses navigate their way through these changes.

“Digital technology is a deflationary force in an inflationary economy. Businesses – small and large – can improve productivity and the affordability of their products and services by building tech intensity,” Nadella recently explained.

Of course, Nadella emphasized that his company is glad to help today's business adapt to a cloud-centric tech landscape in the 2020s.

“The Microsoft Cloud delivers the end-to-end platforms and tools organizations need to navigate this time of transition and change,” Nadella clarified.

Revenues from the Cloud

Of course, Nadella's words wouldn't mean much to investors if Microsoft wasn't able to make money from its Cloud segment.

There's no need to worry about that, as Microsoft Cloud generated a healthy $20.7 billion in revenue during 2021's third quarter.

That figure represents a 36% increase on a year-over-year basis.

Truly, the data demonstrates that Microsoft's transition into a cloud business has been highly successful.

Revenue in Intelligent Cloud was $17 billion and increased 31% (up 29% in constant currency), with the following business highlights:

For example, Microsoft's server products and cloud services revenue increased by 35%.

This, in turn, was driven by Azure and other cloud services revenue growth of 50%.

Sure, there are other cloud businesses out there, but they're not all posting numbers like these.

Wall Street’s Take

According to TipRanks’ analyst rating consensus, MSFT is a Strong Buy, based on 22 Buys and one Hold. The average Microsoft price target is $369.36, implying 10% upside potential.

The Takeaway

As the world's businesses change, Microsoft is undergoing changes as well.

Yet, change isn't necessarily a bad thing. Microsoft is evolving in the right direction, and the financial data proves this.

So, don't worry about Microsoft's transition into the cloud.

It has only helped MSFT stock to go higher, and the momentum isn't likely to stop anytime soon.

Disclosure: At the time of publication, David Moadel did not have a position in any of the securities mentioned in this article. ​

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

TipRanks

Is Zoom Video Communications Stock a Buy?

4 years 10 months ago
Zoom Video Communications' (NASDAQ: ZM) stock has declined about 40% over the past 12 months as investors fretted over its post-pandemic slowdown. That sell-off continued after its third-quarter report on Nov. 22.At first glance, Zoom's headline numbers looked solid. Its revenue
The Motley Fool

3 Reasons to Buy Siacoin

4 years 10 months ago
For cryptocurrency investors, the search for meaningful utility is always on. Finding the next cryptocurrency network with the disruptive ability to innovate in hyper-growth sectors of the economy is the goal.
The Motley Fool
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