not vested
Microsoft Corporation (MSFT) Stock Is Going to $80 in 2017
A fifth consecutive year with double-digit returns is in the cards
By Will Ashworth
Source: Investor Place
http://investorplace.com/2016/12/micros ... GScsPl96M8
Microsoft data suggests that two to three years ago, hackers attempted to carry out about 20,000 cyber-attacks each week.
However, the firm states that the number of attempts is now up to between 600,000 and 700,000 per week.
On a year-over-year basis, earnings grew 3.6%, matching consensus estimates for 79 cents per share.
Top-line sales increased by a 2.2% margin over the year-ago level, which slightly exceeded forecasts.
The company has been investing heavily in cloud applications. It’s a market that is projected to jump from last year’s $204 billion to $318 billion in two years’ time.
Microsoft’s acquisition of LinkedIn gives it an incredible professional network: LinkedIn has 467 million users and 128 million in the U.S. — roughly 40% of our total national population.
Better yet for MSFT stock, that 40% represents the company’s target audience — tech savvy, money-making individuals.
I still see up to another 50% upside over roughly the next three years.
That’s because profits are expected to grow around 10% this year, 15% next year, and as much as 25% in fiscal 2019 at a time of rising dividends and share buybacks.
Microsoft has committed $1 billion into cybersecurity investment for its services as well as R&D. The company is reporting 600,000 to 700,000 attacks a week, up from about 20,000 just three years ago. But it’s not as much the threat as the opportunity.
According to tech site techemergence.com, there’s an artificial intelligence-based cybersecurity market that will be worth $8.3 trillion market by 2035 in the U.S. alone.
And given the fact that the U.S. government is one of MSFT stock’s biggest clients, security is crucial.
Going hand in hand with this is the impressive growth of Azure, Microsoft’s cloud-based operating and storage system. Revenue growth year over year is running around 93% and Azure is getting big enough to compete with Amazon Web Services, the cloud division of Amazon.com, Inc (NASDAQ:AMZN).
Recent earnings were solid overall and there’s no reason to think MSFT stock has seen its best days already. And while its 30 P/E may look expensive, AMZN is trading at a P/E of 185. And MSFT also delivers a solid 2.4% dividend as well.
Microsoft’s commercial cloud business continues to support better-than-expected top- and bottom-line results at the corporate confessional each quarter.
In fact, with double-digit revenue growth and annual sales of $20 billion expected by next summer, Microsoft’s cloud is big business.
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