By
Godfrey Benjamin
April 18th, 2024
Microsoft (MSFT) shares added about 0.22% on Monday to trade above $165 and another 1.50 % today in the pre-market. Amid the ongoing coronavirus panic in the stock market, Microsoft shares remain a safe place to put your money into.
Microsoft Corporation (NASDAQ: MSFT) shares rose by less than a dollar on Monday, to see the value fix slightly above $165. The shares have been rising almost at the same pace that they fell during the first quarter sell-off. Having regained almost half of the lost value, Microsoft has strategically placed itself as a better alternative for investors fleeing other traditional markets. Today, in the pre-market, MSFT stock is 1.50% up. Its price is $167.99. Meanwhile, the market cap is 1.26 trillion.
The shares enjoyed the highest value in the first quarter of the year, 2020, whereby the market price hit $190 in the first two months. Being a trillion-dollar company that runs most of its services through the internet, its stock market is being closely watched by a lot of investors.
The coronavirus crisis has been pushing more and more people to operate their businesses remotely, to avoid contracting the virus. As of April 13, the number of confirmed cases in the United States had hit and significantly surpassed half a million cases, as the death toll tops 23,000.
However, according to President Donald Trump, the rate of new infections has reduced, whereby the curve has begun going down, suggesting that the bad days may be in the past. Despite the good news, investors remain wary of going back to the stock market, as the coronavirus is very unpredictable, and it may take a new course anytime.
At the time of news reporting, the number of confirmed cases according to the World Health Organization (WHO) has reached 1,920,918 whereas the total confirmed deaths soar above 119,686.
Microsoft (MSFT) Shares amid Coronavirus
As a result of the ongoing coronavirus crisis, Microsoft released new guidance for one of its business units, the personal computing segment. Whereby on January 29, the company issued quarterly revenue guidance between $10.75 and $11.15 billion.
This included a much wider than usual range, which therefore reflected the adverse effect of the coronavirus on its business. However, other business sectors, like cloud computing are experiencing a surge in customers, as more and more people use their basic tools to work remotely.
Some of the applications include Office 365, and also Skype. Based on analyst estimates, Microsoft is looking forward to a rise in its revenue from $141.7 billion in the fiscal year 2020, to clinch above $157.6 in the next fiscal year. If this is met, the company’s revenue will have an annual growth of 11.2%.
Amid the ongoing coronavirus, the earnings per share are projected to surge from $5.62 to $6.15, between the fiscal year 2020 and 2021. This makes Microsoft (MSFT) shares a very better alternative although the returns may not be as huge as when the virus was not around.