Well, this "old guard" tech company recently soared like a small-cap again – jumping 10.5% on a single day, following a strong third-quarter earnings report on April 24.
While that's huge jump in share price, it actually understates the significance of the stock's rally. On that day, this company added a stunning $36.6 billion in value to its shareholders.
Let me put that in perspective.
That one-day move was more than five times the entire market cap of hyper-growth media darling GoPro Inc. (Nasdaq: GPRO).
Wall Street was particularly impressed with this company's continuing massive growth in the breakout field of cloud computing.
But that's not all that's going on.
There's a second major factor at work – one that will continue to push this company's shares even higher from here.
Let's take a look at the company – and that "x factor"…
The Comeback Kid
Most recently, back on Feb. 3, 2015, I stood behind the company after Wall Street expressed disappointment in the firm's fiscal second-quarter results.
I noted that I had seen nothing in the earnings release to change my basic thesis that Microsoft will succeed in its massive realignment and that its stock still faces enormous upside. Here's what I said at the time:
"Investors overreacted to what was actually a pretty good earnings report – no surprise there. And Wall Streeters, who should know better, are missing a big part of the Microsoft story – this isn't the same complacent, one-trick Windows/Office-rooted enterprise it was not too long ago.
"The tech giant has been quietly and steadily rebuilding, repositioning, and refocusing itself for success in a brand-new era through big investments – and rapidly increasing sales – in hot sectors like cloud computing."
And just like I predicted, that rebound came April 24.
Consider that on April 2, when the stock entered its current uptrend, Microsoft stock closed at $40.29 a share with a market cap of $326.9 billion. By April 29, it had climbed 21.7% to close at $49.06, with a market cap of $396.9 billion.
That's $70 billion in new shareholder value in just 19 sessions, or an additional $3.7 billion in market cap each trading day.
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.