Subscribe to Money Morning get daily headlines subscribe now! Money Morning Private Briefing today's private briefing

microsoft stock

Article Index

Is Microsoft Stock a Buy After 2016 Q3 Earnings?

Microsoft Stock

With the Microsoft stock price edging close to its all-time high, the Q3 earnings due out tomorrow (Thursday) will tell us a lot about how much higher shares will go.

Because the company has beat expectations for 10 quarters running, the odds are high Microsoft Corp. (Nasdaq: MSFT) will again beat the Street when it reports tomorrow (Thursday).

Here's why MSFT stock remains a buy, and what investors need to keep an eye on in the Q3 earnings report...

Two Big Reasons MSFT Stock Is a Buy After Earnings

msft stock

MSFT stock was edging up Thursday in anticipation of good news when the company reports earnings after the market close.

But unless Microsoft Corp. (Nasdaq: MSFT) has a really nasty surprise in store, it's a buy even if it doesn't post a strong beat. That's because Microsoft has worked hard on its transition away from its legacy PC business to capitalize on two major areas of growth.

Here's what those areas are - and why they'll enrich both Microsoft and those who own MSFT stock...

Microsoft Stock Will Keep Soaring on These Two Huge Trends

Microsoft_square

Just a few years ago, Wall Street wrote off Microsoft stock. It watched MSFT shares fall 18.4% in 2012 down to the same levels where they traded in 2009.

Microsoft shareholders were stuck with no price growth and a CEO with no plans to improve the situation.

Then MSFT rose 20.1% in 2015 and looks to climb again in 2016.

Why will Microsoft Corp. (Nasdaq: MSFT) stock keep crushing the market? Here are two reasons...

A Microsoft Stock History Timeline

MSFT stock history

The Microsoft stock history tells a tale not just of peaks and valleys, but an uncanny knack to exploit opportunities.

Microsoft Corp. (Nasdaq: MSFT) is one of the U.S. tech industry's foundational companies. As the provider of the market-dominating Windows operating system and the Office productivity suite, Microsoft became synonymous with the PC revolution.

But for a few key events, Microsoft's history would have turned out very differently.

Here's the full MSFT stock history timeline...

Microsoft Stock Forecast 2016: The Cloud Starts Paying Off

microsoft stock

The Microsoft stock forecast for 2016 is for hefty gains as Wall Street begins to recognize how much potential the company's cloud business has.

Not that 2015 was a bad year for Microsoft Corp. (Nasdaq: MSFT). The Microsoft stock price gained 18.65% last year. But Microsoft's strong showing over the past two years doesn't mean Microsoft stock is played out.

Here's why 2016 will prove that the Microsoft turnaround is just getting started...

Microsoft Stock Price Poised for 14% Lift from Cloud (Nasdaq: MSFT)

microsoft chart

The Microsoft stock price has been riding on a cloud lately.

Microsoft Corp.'s (Nasdaq: MSFT) rapidly growing cloud businesses were the main reason the MSFT stock price rose nearly 13% in the two days following a strong Q1 earnings report last month.

But despite those successes, Microsoft is not standing still with its cloud businesses - a great sign for Microsoft stock.

Here's what Microsoft did just today to grow its cloud businesses even faster...

Microsoft Earnings for Q1 2016 (Nasdaq: MSFT)

Microsoft Earnings

The 2016 Q1 Microsoft earnings, due out after the market close today, are likely to build on the momentum from the last quarter.

But the Q1 Microsoft earnings will contain only a glimmer of the catalysts destined to drive Microsoft stock higher over the next two years.

You see, Microsoft Corp. (Nasdaq: MSFT) has a new strategy.

Here's how this strategy will generate billions of dollars in future MSFT earnings...

Microsoft Stock to Thrive on This "Borrowed" Strategy (Nasdaq: MSFT)

Microsoft stock

The chart for Microsoft stock over the past two years suggests the stock's solid run in 2014 peaked in early 2015.

In 2015, MSFT stock is up less than 3% and has zig-zagged a lot along the way. But don't be fooled. The Microsoft rebound is far from over.

That's because the Redmond, Wash.-based tech giant has adopted a new, promising strategy.

Here's how this new strategy will generate billions of dollars in value for Microsoft investors...

Microsoft's "Steve Jobs Moment" Just Made MSFT Stock a Must-Buy

Microsoft earnings

Microsoft CEO Satya Nadella has already made his company a force to be reckoned with, setting the once-stagnant tech giant back on a course toward innovation and big returns.

His efforts have helped push MSFT stock up 27% in just 20 months.

But when he took the stage at a New York City press event on Oct. 6, Nadella started to sound a bit like another, more famous tech executive.

That was the instant Nadella unveiled a series of new hardware products coming from a company that is renowned as one of the biggest software firms on the planet.

Of course, Nadella was taking a page out of Steve Jobs' winning playbook. Apple has in fact become more than just a computing company - it's a true tech "ecosystem."

This is some of the most exciting and potentially profitable news we've ever had from Microsoft. Let me show you what's just around the corner - and how it will pack on billions in value for investors...

Microsoft Event More About Windows 10 Than Devices (MSFT)

laptops

Today's (Tuesday) Microsoft event was a showcase for a lot of slick new devices, including new Lumia phones, new Surface tablets, and the company's first-ever laptop.

The snazzy hardware is part of Microsoft Corp.'s (Nasdaq: MSFT) goal of rejuvenating the company with an ecosystem that can compete with Apple and Google.

Here's what we learned today about Microsoft's new hardware, and how it fits into that larger strategy...

Why Microsoft Stock Will Get a Spark from Windows 10 (MSFT)

microsoft stock

Wall Street celebrated the official launch of Windows 10 today (Wednesday) by adding 2.25% to Microsoft stock.

Think of that as a first installment on the benefit that Windows 10 will deliver to Microsoft Corp. (Nasdaq: MSFT) stock over the next few years.

And yes, even though Windows 10 is a free upgrade, it has great potential to lift MSFT stock.

Here's how Microsoft will monetize Windows 10...

Microsoft Stock Still a Buy After MSFT Q4 Earnings Loss

Microsoft stock

Microsoft stock is suffering from a bad reaction to a Q4 earnings report that, at first blush, looks really awful.

MSFT stock plunged more than 4.5% in after-hours trading Tuesday, thanks to a one-time write-off of the purchase of Nokia's devices unit.

But the reality isn't nearly so bad. Backing out the Nokia charge, Microsoft's EPS was $0.62 - higher than analyst expectations for $0.58.

Here's why Microsoft stock is still a buy...

Expect a Microsoft Dividend Hike in September (Nasdaq: MSFT)

Tech investing

The Microsoft dividend will rise again in September if the company follows a well-established pattern.

For the past nine years, Microsoft Corp. (Nasdaq: MSFT) has announced a dividend hike in September to be applied to the next quarter's payout. Over the past 10 years, the MSFT dividend has soared by 287.5%.

The only question now is how big this year's Microsoft dividend hike will be...

Should I Buy Microsoft Stock?

buy Microsoft stock

Whether to buy Microsoft stock is a question investors started to ponder last year as the iconic tech company shed its decade-long status as a perennial laggard.

As Microsoft Corp. (Nasdaq: MSFT) stock soared nearly 40% from November 2013 to November 2014, investors were eager to jump on board.

But since then, investors have had reason to wonder if it's still a good idea to buy MSFT stock.

This question actually has a pretty easy answer...

Here's Why Microsoft (Nasdaq: MSFT) Stock Recently Soared

Nasdaq: MSFT

We've been telling you for a while now that Microsoft Corp. (Nasdaq: MSFT) trades like a small-cap - the kind of action investors dream about.

Recently, this old-guard tech company's share price surged - jumping 10.5% in one day.

Here's what fueling their recent (and future) success...