Is Microsoft a Buy?
Wall Street doesn't seem to know what to think about Microsoft (NASDAQ: MSFT) stock in 2023. The software giant's shares trounced the S&P 500 through the early phases of the pandemic, but its outperformance has waned over the past year. Now, investors appear to be worried about slowing growth and the potential for weakening sales trends to spread into its cloud services business.
Short-term risks like those are always present with any potential stock purchase, but smart investors focus on a company's wider thesis. With that in mind, let's look at some factors that make Microsoft a compelling investment today.
Some key parts of Microsoft's empire are shrinking. PC shipments are slumping, for one, and executives are projecting further declines in the neighborhood of 30% that will bring them down to pre-pandemic levels. Microsoft is enduring a growth hangover in its gaming segment, too, as consumers resume their normal entertainment habits.
Source Fool.com
