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MSFT STOCK WRITE UP


MSFT (MICROSOFT)

  • P/E: 30.4
  • GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: $.11
  • SECTOR: TECHNOLOGY SERVICES
  • ASSETS-LIABILITIES: 1.45
  • DIVIDEND: 2.26%

Microsoft is a ubiquitous company, and has a long history of successful products. In recent years, Microsoft has not been as innovative within the field of technology as companies such as facebook, tesla, apple, google, or netflix. However, I am typing this write-up on a windows system, and have only ever owned windows systems in my life. Microsoft makes a popular product, and the business is expanding into social media.
In the last quarter, Microsoft posted a decline in revenue for products sold, with an increase in “service and other” revenue, with an increase in gross margin. The company also increased its R&D budget. The operating income increased, partially offset by a one-time expense and higher taxes in the comparable 2016 quarter. While the company increased their assets, the ratio of assets-liabilities dropped in Q3 '17, with the company substantially increasing its long-term debt. Worth noting is that Microsoft beat wall street expectations for both EPS and revenue for the last 4 quarters, including Q3 '17.
Microsoft, in an attempt to capitalize on social media, purchased Linkedin. Linkedin has an global alexa rank of 24 as I write this article. This move provides additional exposure for Microsoft, but not to the extent of instagram, reddit, baidu, or twitter, for example. Skype, another popular social media site, is also owned by Microsoft. Satya Nadella, the company's CEO has an educational background in engineering and computer science. He joined Microsoft in 1992, and worked his way up within the company.
Windows has approximately 89.7% of OS market share, according to netmarketshare's website. Microsoft did, however, lose in the console war with Sony, as the Xbox one was nearly doubled in sales by the ps4 as of the beginning of the year. Microsoft is expanding its social media presence with the acquisition of Linkedin. The company has boosted its R&D with the aim of creating innovation to drive future profits.

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