Why did Microsoft stock close 3% lower on Tuesday?
Microsoft ( MSFT 0.17%) shares closed 3.3% lower on Tuesday after the U.S. Department of Labor reported that producer price inflation hit a historic high in November, up 9.6% from a year ago. This news came on top of a reported 6.8% jump in consumer prices that came out yesterday -- the fastest rate of price growth in 40 years.
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Why did Microsoft stock rise?
It was a tale of two tech stocks Wednesday, as Microsoft MSFT –0.47% rose and Alphabet GOOGL +1.99% fell following earnings. Microsoft stock was rising early Wednesday, with the software maker getting a boost from better-than-expected guidance for its fiscal fourth quarter, and strong demand for its cloud services.
Is Microsoft going to keep going up?
Microsoft stock forecast 2022-2025, 2030 It may then climb to $495.50 by the same point the following year in 2025 and then up to $567.68 by April 2026. Their longer-term forecast for Microsoft saw the stock price hitting $637.32 by April 2027.
Is Microsoft stock a buy now?
Microsoft stock is not a buy right now.
Is Microsoft overvalued now?
No matter how you look at it, it is clear that Microsoft (as well as the entire tech sector) is currently severely overvalued.
What is Microsoft stock prediction?
Stock Price Forecast The 37 analysts offering 12-month price forecasts for Microsoft Corp have a median target of 350.00, with a high estimate of 410.00 and a low estimate of 298.18. The median estimate represents a +30.81% increase from the last price of 267.56.
Is Microsoft a buy or sell?
Microsoft has received a consensus rating of Moderate Buy. The company's average rating score is 2.97, and is based on 28 buy ratings, 1 hold rating, and no sell ratings.
What will Microsoft stock be worth in 5 years?
According to the algorithmic forecasts of Wallet Investor, MSFT stock could rise to $387 over the next 12 months and is a “good long-term (one-year) investment”. Although the service does not provide a Microsoft stock 10-year forecast, it predicts that MSFT could reach $676 in five years.
Does Microsoft pay dividends?
REDMOND, Wash., March 14, 2022 /PRNewswire/ -- Microsoft Corp. on Monday announced that its board of directors declared a quarterly dividend of $0.62 per share. The dividend is payable June 9, 2022, to shareholders of record on May 19, 2022. The ex-dividend date will be May 18, 2022.
Is MSFT undervalued?
Microsoft is slightly undervalued based on the P/E ratio, and is expected to keep innovation growth.
Is Microsoft safe stock?
Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Microsoft has proved itself a safe and durable grower, and perhaps the best tech stock to own for older investors and those near retirement.
What stocks will split in 2022?
Splits for June 2022Company (Click for Company Information)SymbolAnnouncement DateA-Mark Precious Metals Inc Company WebsiteAMRK5/10/2022Aikido Pharma Inc Company WebsiteAIKI6/6/2022Amazon.com Inc Company WebsiteAMZN3/10/2022Bombardier IncBBD_B:CA6/9/202238 more rows
Is MSFT a good long term investment?
The return on invested capital has been attractive over time and much higher than the cost of capital, which means that MSFT has done an excellent job by reinvesting into very profitable growth opportunities. As a result, shareholders have been nicely rewarded with an annualized return of around 33% over that period.
1. Microsoft Cloud's growth
Microsoft's dramatic growth over the past seven years was led by the expansion of its cloud services, which include Azure, Office 365, Dynamics, LinkedIn, and its other cloud-based software. The company reports the growth of these businesses together as the "Microsoft Cloud."
2. Reopening tailwinds
During the onset of the pandemic, several of Microsoft's enterprise-facing services -- including Office 365 Commercial, Dynamics 365, and LinkedIn Marketing Solutions -- suffered slowdowns as businesses closed.
3. Returning plenty of cash to shareholders
Microsoft transformed into a high-growth company again over the past few years, but it continues to return tens of billions of dollars to its investors.
The one reason to sell Microsoft: its valuation
Microsoft is worth $2.4 trillion today, roughly eight times its market cap of about $300 billion when Satya Nadella took over as its CEO.
Is it the right time to buy Microsoft?
Microsoft's stock is richly valued, but the bears have been banging that same drum for years as its shares have skyrocketed. I believe Microsoft deserves that premium valuation since it's still a solid long-term investment that will continue to profit from the secular expansion of the cloud services market.
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What happened
Microsoft ( MSFT -2.59% ) shares closed 3.3% lower on Tuesday after the U.S. Department of Labor reported that producer price inflation hit a historic high in November, up 9.6% from a year ago. This news came on top of a reported 6.8% jump in consumer prices that came out yesterday -- the fastest rate of price growth in 40 years.
So what
Reporting on Microsoft's price decline, Bloomberg drew a direct line from the inflation data to the weakness in Microsoft's stock price. But why exactly is inflation bad news for Microsoft (and other tech stocks as well)?
Now what
Granted, the Federal Reserve will probably work to get inflation rates under control, but even there, the news isn't all great because the Fed's primary tool for containing inflation is raising interest rates.
