What is your view on the current macro environment and the certainty that Microsoft could offer to perform in shrinking economic environments? As it already did in the financial crisis of 08
Despite the economic turmoil that might be ahead of us, Microsoft is very well-positioned not only to thrive through a recession, but also to come stronger the other end.
As a company: Microsoft has a wide moat on its products that provides it with pricing power (they can raise prices of Microsoft 365 or Azure and will not lose any clientele). They are a cash-producing machine, and that will not stop. They will do very well as a company.
As an investment: At current prices, and with relatively conservative growth assumptions, Microsoft could offer high single digits returns for the next 10 years (one could argue that this is a good return in a high inflation environment). However, since growth rates could be lower (and also higher if they come up with new revenue streams as they have been doing in the past) depending on the impact of the recession, Microsoft seems not to be the best investment out there at the moment.
Conclusion: Microsoft is a very save, but modest investment.
What is your view on the current macro environment and the certainty that Microsoft could offer to perform in shrinking economic environments? As it already did in the financial crisis of 08
Despite the economic turmoil that might be ahead of us, Microsoft is very well-positioned not only to thrive through a recession, but also to come stronger the other end.
As a company: Microsoft has a wide moat on its products that provides it with pricing power (they can raise prices of Microsoft 365 or Azure and will not lose any clientele). They are a cash-producing machine, and that will not stop. They will do very well as a company.
As an investment: At current prices, and with relatively conservative growth assumptions, Microsoft could offer high single digits returns for the next 10 years (one could argue that this is a good return in a high inflation environment). However, since growth rates could be lower (and also higher if they come up with new revenue streams as they have been doing in the past) depending on the impact of the recession, Microsoft seems not to be the best investment out there at the moment.
Conclusion: Microsoft is a very save, but modest investment.