In our view, Microsoft is currently able to meet weak corporate demand in the current quarter and that trend could have a significant impact on the company’s licensing revenues in the second quarter. For high-income investors, these areas will continue to be a major concern, along with the main problem of expected weakness in research revenues in the coming quarters.
For these reasons, if the volatility of the US equity benchmark increases, MSFT may continue to decline and high-income investors may wait for a cheaper entry point before opening a position. The latest count of analysts’ opinions from major securities firms shows that of the 30 stocks that make up the Dow Jones Industrial Stock 30 Average, Microsoft is the number one analyst. Microsoft was also named one of the top analysts on a variety of S&P 500 index constituents, ranking 9th out of 500.
Many securities firms have already submitted reports on MSFT stock and Oppenheimer reaffirms MSFT’s “Outperform” rating. According to some market researchers, MSFT’s estimated price for the next period is $ 256 based on some research reports. Meanwhile, some market researchers say they expect it in their research notes. It confirms that MSFT has reached its target price of $ 240 and previously expected a price of $ 232. According to many research reports, MSFT shares have been rated “Buy”.
Impact of COVID-19 on the Technology sector
According to a Johns Hopkins University study, the number of COVID-19 cases worldwide has exceeded 53 million. Many cities in the United States and Europe have seen another wave, albeit worse than the first wave. According to experts, this may have just begun when it got worse during the winter months.
This has a negative impact on economic activity. However, we have found that this has a positive impact on technology, especially since remote working remains the norm. This also applies to online purchases, digital payments and contactless payments. The tech sector was the least affected during the market crash caused by COVID-19. Tech rallies have been the major force in the recovering market since March.
The Technology Select Sector SPDR (XLK) has improved by 30% since early 2020, compared to a 6.3% increase in the S&P 500. Digital transformation is seriously recovering during the pandemic and is giving Microsoft a big boost over the next decade. It’s not a fast-growing high-tech stock, but it’s overpriced for good reason. Slow and steady revenue growth will translate into even higher net profit growth over time as the cloud continues to pay off amply. If you want to invest in this stock, you can check its releases at https://www.webull.com/releases/nasdaq-msft.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.