Microsoft Attracts Value Investors with Undervalued Stock
Microsoft shareholders have had a lackluster year so far, with shares rising only about 4% as of early August. Despite this underwhelming performance, Microsoft's stock is considered attractively priced for potential investors.
The company has a diverse range of offerings, including the ubiquitous Windows operating system, the dominant Office 365 suite of applications, the second-largest cloud computing platform Azure, the Xbox gaming platform, and LinkedIn.
Like other large tech companies, Microsoft has been investing heavily in artificial intelligence and incorporating it into many of its products and services. However, some investors are concerned that these investments may not pay off immediately.
Microsoft's Azure platform is growing robustly, with the company's contracted backlog (a source of future revenue) recently doubling year over year to $627 billion. The company also offers a dividend payout, although its yield is relatively low at 0.7%.