Although there have been recent concerns about a plummeting price action and an unfavorable business condition, the Microsoft Stock is among the most vibrant stock picks presently in the NYSE. We can’t deny the fact that Microsoft is facing an increasing level of competition from rival companies as well as phone companies in the PC market. The iphone and ipad releases by their fierce rival, Apple, has fueled speculation that the monopoly of Microsoft in the IT industry is over and focus has now been shifted to rival companies. Even with the increased activities of other competitors in the IT market, Microsoft has continued to post high profits, with record profits in 2010 and 2013. This positive rise in price has also reflected on the share price of the stock in the NYSE.
Many believe that positive earnings will impact positively on future earnings. But others believe that the stock will gradually plummet giving the astronomical rise in the activities of other competitors. But Microsoft has what they don’t have, which is a pioneering advantage and a very strong capital base. The company has long been established and saturated the market before companies like Apple came on board.
Microsoft still has monopoly over the computer stock market, as it still retains about 90% of the industry’s Operating System, while Linux and Mac OS’s maintain second and third respectively, although by small margins. This means huge profit to Microsoft as the company earned more than $40 million in profits the previous financial year.
The company is also trying to make itself available in future technology as there are series of innovations undertaken within Microsoft to make this possible. The IT market is highly competitive and only those that are always innovative will stay ahead of competition. In this case, Microsoft has been able to hold their ground in the industry as the leader.
This stronghold in the IT industry has translated to better MSFT stock performance and increased dividends to investors. Microsoft is no doubt a stock worth investing in, considering its present performance and the future outlook of the stock. It is a high yield dividend-based stock and an excellent stock to keep in an investor’s portfolio. Most investors consider MSFT stock as a long term stock that has very strong potential to outgrow market speculation. However, the time to invest in this stock would be now in order to enter the market on a lighter note.