Microsoft Stock: Buy at the High?
Microsoft (NASDAQ: MSFT) has been on a tear so far in 2019. The tech colossus' stock price is already up more than 40% this year, and its shares are trading near all-time highs. But could this $1 trillion behemoth still be undervalued?
Microsoft's transition to the cloud has been impressive. Its decision to offer its Office suite of productivity applications as a cloud-based service was brilliant. Rather than receiving a one-time up-front sale and then trying to convince users to upgrade several years later, as was historically the case with the traditional packaged software model, Microsoft's Office 365 service helps to lock users into its ecosystem with a relatively small, but recurring, monthly fee . Microsoft is able to deliver upgrades via the cloud, which helps to keep its software up to date and users on the same and best version of its software. This provides a better experience to users and gives Microsoft a consistent source of high-margin, recurring revenue.
Microsoft's cloud services are fueling its growth. Image source: Getty Images.
Source Fool.com
