By
Bhushan Akolkar
March 22nd, 2024
On Monday Microsoft stock experienced a 5% market rise. The global computer software firm is well-placed to outlive the coronavirus storm better than many other stocks.
Global computer software firm, Microsoft Corporation (NASDAQ: MSFT) stock has experienced a 5% market rise on Monday. Since sliding during the coronavirus sell-off, the firm’s stock did not plunge into the red in the first quarter. However, the firm’s stock trades 17% below it high on February 17.
In the firm’s fiscal second-quarter earnings report issued in January, Microsoft reported earning $1.51 per share on revenue of $36.91 billion, which was the highest on analysts’ expectations of $1.32 EPS and revenue of $35.67 billion.
However, in the fiscal 3rd quarter 2020 guidance update, released towards the end of February as a response to the coronavirus pandemic, it disclosed that it would not meet its revenue forecast for its more personal computing segment because of hindrances to its China supply chain.
The company said in a statement:
“Although we see strong Windows demand in line with our expectations, the supply chain is returning to normal operations at a slower pace than anticipated at the time of our Q2 earnings call”.
“As a result, for the third quarter of the fiscal year 2020, we do not expect to meet our More Personal Computing segment guidance as Windows OEM and Surface are more negatively impacted than previously anticipated.”
However, there are certain headwinds for Microsoft that will help investors put a minor setback in the rearview mirror.
Microsoft Stock to Overcome Coronavirus Setback
Reportedly, Microsoft Stock is well placed to outlive the coronavirus storm than many other stocks on the wall. Accounting for a market cap of over $1 trillion $137 billion in cash and less than $70 billion in debt, Microsoft has the capital to withstand a prolonged economic downturn while still taking over companies like Affirmed to help its cloud growth.
The firm’s team platform will also be pivotal to the success of the firm in months to come with its stock a 1.3% dividend to investors. Last year too, Microsoft stock rose by almost 30% with impressive earnings.
The firm has a highly secure strong balance sheet and attractive valuations with $134.3 billion in cash on hand at the end of 2019, one of the most massive such stockpiles among all U.S. companies. Because of these, Microsoft stock is part of the top stock picks in the S&P 500, Nasdaq 100, and Dow Jones and given the prestigious “AAA” and “Aaa” ratings.
Reportedly, a down market spurred on Friday according to jobs report; it had Microsoft stock down about 1.5% on April 3, however, the firm’s stock as at press time was rising about 5.31% selling at $161.44.