3 Reasons Why Microsoft Is A Growing Stock

Keep investing in this awesome technology stock with some money.

It should not be difficult to earn  money by investing in stocks. it's easy to do this while Microsoft (NASDAQ: MSFT) shares are still making money for their investors every quarter, The Washington-based Redmond company announced last week that investors' earnings rose 17 %  and earnings per share rose 34 % year over year in the last quarter. Last year, it was determined that share values ​​increased by 43 % and reached the highest value by increasing 4 X in the last 5 years. 3 reasons why the value increase of stocks is the biggest investment tool in the future:

1-Office and Xbox continue to grow

Economy and production platforms announced the results of the last 2 years: They stated that the share revenues increased by 15 percent in 2019 and 15 percent in 2020. Office's transition to subscription service has done wonders for Microsoft's core software business. In the second quarter of the fiscal year, revenue grew by 13% or 11% excluding currency changes. Microsoft, by combining World, Excel and other productivity software in one subscription plan Microsoft 365 reached 47,5 million consomer subscriptions up of 28 % year over year. Xbox content and software, service revenue increased by a staggering 40 %year over year. Even more impressive was Xbox hardware, where the November launch of the Xbox Series X and Series S was the most successful in company history, sending game hardware revenue up 86% year over year. Even Games account is less than 10 percent of Microsoft's total revenue, in the near future (like 5 years) The Xbox business is looking very bright. The Xbox Game Pass subscription service now has 18 million subscribers, but it's growing rapidly, with 3 million new members added in the last quarter alone. With the transition to subscription service, interest in both game services and software is rapidly increasing.

2.Cloud services 

The primary reason to invest in Microsoft is growth in the cloud. Microsoft Azure grew, last quarter excluding currency value,  increasing revenue by 48 % Some analysts predicted that Azure will exceed revenue for both Office and Windows in the coming years. As businesses seek more digital solutions in a post-COVID-19 world, the demand for cloud infrastructure services is constantly increasing. Azure, as one of the few global cloud service providers to serve large enterprise customers, has made Microsoft a solid competitor to other cloud service providers. Microsoft spent $ 5,4 billion in capital expenditure in the last quarter, to support the growing global demand and customer use of cloud services, and its investment level more than 4 times outpaced the stock market. And the level of investment now indicates that it will grow even more in the future.

3.Free cash flow and dividends

Microsoft's profitable software business has generated high profit margins and free cash flow for a long time. Free cash flow increased 17 percent in the last quarter, bringing the total to $ 50 billion in the last four quarters, making Microsoft a large dividend as well. Over the past 10 years, the quarterly dividend has risen from $ 0.13 to $ 0.56 per share. This brings the annual payment to $ 2.24 per share and gives investors a dividend yield of 0.94 percent at the time of writing. The software giant; consumer software, cloud services and gaming are also gaining big. With this gain, Microsoft is very dominant in its position and extremely profitable. That's why Microsoft shares are the perfect technology stock for any investor's portfolio. Do you have to invest $ 1,000 in Microsoft Corporation right now? You'll want to hear this before you think of Microsoft Corporation. Their founding partners David and Tom Gardner, despite all these positives, investment legends Motley Fool reported to investors the best 10 stocks available for purchase right now. Microsoft Corporation was not among them. According to the statements of Motley Fool Stock Advisor, which has left behind more than 4 times in the stock market and has been providing online investment services for twenty years; There are 10 better stocks available to buy. Source:The Motley Fool You may also 

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