MSFT Stock - is Microsoft's Stock a Good Buy Today? Best Investments - $MSFT | Summary and Q&A

TL;DR

Microsoft is a technology company with three main segments: productivity and business processes, intelligent cloud, and personal computing. Revenue is spread out among these segments, with personal computing being the largest. The CEO's focus on growth and shifting towards better margin businesses indicates promising future prospects for Microsoft.

Key Insights

• ❓ Microsoft's revenue is well-diversified among its three main segments.
• 😶‍🌫️ Azure is a significant player in the cloud market, but competition from AWS remains a challenge.
• 👶 The shift towards growth and better margin businesses under the new CEO indicates a positive trajectory for Microsoft.
• ❓ Revenue and earnings per share have been steadily increasing in recent years.
• 🍉 The GitHub acquisition highlights Microsoft's focus on software development for long-term success.
• 😶‍🌫️ Personal computing's contribution to revenue has been decreasing, while the cloud segment is growing.
• ❓ Microsoft's valuation suggests that the stock is somewhat fairly priced.

Transcript

Hey YouTube. I'm Jimmy and this video I'm going to walk through my analysis of Microsoft ticker symbol MSFT. This is the 20th video in our series where we're analyzing all 30 stocks in the Dow Jones industrial average. What the ultimate goal of taking all of that analysis and building three different portfolios a value a growth and a dividend you c... Read More

Questions & Answers

Q: What are the three main segments of Microsoft's business?

Microsoft's three main segments are productivity and business processes, intelligent cloud, and personal computing.

Q: How does Microsoft generate revenue from personal computing?

Microsoft books revenue for their Windows products and sells devices like Surface laptops and Xbox hardware and software.

Q: What is the key product in Microsoft's intelligent cloud segment?

The key product in the intelligent cloud segment is Microsoft Azure, which is similar to Amazon's AWS and is the second largest public cloud service.

Q: How has Microsoft's revenue and earnings per share performed in recent years?

Microsoft's revenue has been growing nicely, with a 14% jump from $96 billion to $110 billion. Earnings per share have followed a similar trend.

Q: What has been the trend in revenue contribution from different segments?

Personal computing's contribution to revenue has been decreasing, while cloud revenue has been increasing. More personal computing is the smallest segment in terms of operating margins.

Q: What acquisitions have Microsoft made recently?

Microsoft recently acquired GitHub, a software development platform, aiming to establish itself as a staple in all businesses' long-term success.

Q: Who is Microsoft's current CEO and when did he take over?

Satya Nadella is Microsoft's current CEO, taking over from Steve Ballmer in 2014. He has been shifting the business towards a more growth-oriented approach.

Q: What valuation methods were used in analyzing Microsoft's stock?

Both the price-to-earnings ratio (PE) and discounted cash flow (DCF) valuation methods were used to assess Microsoft's stock. The fair value derived from PE and DCF analysis landed around $109 and $80 per share respectively.

Summary & Key Takeaways

• Microsoft's business is divided into three main segments: productivity and business processes, intelligent cloud, and personal computing.

• Revenue is mainly generated from personal computing, followed by productivity and business processes.

• The CEO's strategic focus on growth and improving margins suggests a positive outlook for Microsoft.