The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. Is SoFi Stock a Buy Now? As a result, you might be looking at adding at least one of these companies to your portfolio, wondering which is the better buy. TRENDING: Amazon Leads 5 Stocks Near Buy Points Post-Earnings. To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. The company's purchase of Activision is promising, considering it is home to one of the world's most profitable game franchises, Call of Duty. In the fourth quarter, Amazon Web Services had 32% market share, according to research firm Canalys. As a result, Microsoft is far better equipped to heavily invest in Azure and steal market share from Amazon in 2023. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Onetime competitors in personal computing led by big personalities and innovators Steve Jobs and Bill Gates, Apple AAPL and Microsoft MSFT have evolved into two giant companies today offering a variety of products and services. According to Grand View Research, the ERP software market will see compound annual growth of 10.7% until at least 2030, and Microsoft is well positioned to cash in. The gaming business could take . Adept corporate managers can make a good company even better. In fact, Apple stock and Microsoft stock are the top two stocks by market weight in the S&P 500 index. Microsoft stock is not a buy right now. However, Microsoft's Windows operating system still leads in the enormous corporate desktop PC market, with a commanding 76% share. A company whose competitive advantages we expect to last more than 20 years has a wide moat, one that can fend off its rivals for 10 years has a narrow moat, while a firm with either no advantage or one that we think will quickly dissipate has no moat. Invest better with The Motley Fool. Learn more and start a seven-day free trial today. *Average returns of all recommendations since inception. Market Cap. Meanwhile, Amazon is the leader in cloud computing and the champ in e-commerce. There are a lot of stocks we could include on this list, but I think Starbucks (NASDAQ:SBUX) deserves a spot. You only owning a handful of shares when there is a billion (or more) shares outstanding doesnt matter. Powerful global trends drive Microsoft's expansion. Microsoft ( MSFT) is a solid stock to own this year. Some enterprise customers are slowing spending, too, which could pressure its cloud services platform over the next few quarters. Under the Inflation Reduction Act, the Centers for Medicare and Medicaid Services will begin negotiating the prices of the most expensive medicines the agency buys. The company's cloud offerings today include Azure infrastructure services, Office 365 productivity software and Dynamics enterprise software. For the current quarter, Microsoft forecast sales of $50.5 billion to $51.5 billion. The stock trades for an expensive price-to-earnings multiple. Despite near-term financial sector pressure, value-minded investors should consider these funds for the long haul. For example, Windows OEM and device revenue both dropped 39% in Q2 of FY 2023 (ending Dec. 31), thanks to weakness in the consumer PC industry. GE stock jumped at the starting bell, briefly pushing its year-to-date gain above 55%. Microsoft's incredible cash flow generation and massive cash reserves -- which exceeded $100 billion as of June 30 -- also enable it to acquire other attractive growth companies. Verify your identity, personalize the content you receive, or create and administer your account. Cost basis and return based on previous market day close. If You Do This, You Won't Have to Worry About Them, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. The midpoint of $51 billion was below Wall Street's target of $52.4 billion for the March quarter. Realtime quote and/or trade prices are not sourced from all markets. The Walt Disney Company. To make the world smarter, happier, and richer. on this page is accurate as of the posting date; however, some of our partner offers may have expired. Data by YCharts. In Farm Manager 2022, as a farm manager, you have to ensure the right level of harvest, employee satisfaction, animal health, equipment efficiency and proper crop processing. Qualcomm QCOM, +0.10% benefits as . QCOM + MMP = 4.0% very safe yield and 17.3% CAGR long-term return potential (K1-tax form) The Motley Fool has positions in and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Microsoft. Stocks rated 4 and 5 stars are undervalued after being adjusted for uncertainty, stocks rated 3 stars are fairly valued, and stocks rated 1 or 2 stars are overvalued after being adjusted for uncertainty. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Since becoming CEO in 2014, Satya Nadella prioritized mobile- and cloud-based services, while de-emphasizing traditional desktop software licenses. Any other use, including for any commercial purposes, is strictly prohibited without our express prior written consent. Our recommended stop-loss: 3 Long-Term Stocks to Buy and Hold Forever, U.S. to end COVID vaccine mandates for foreign travelers, others next week, The 7 Best Dividend Stocks to Buy for May 2023. JPMorgan Rescues First Republic. OpenAI is the organization behind text generator ChatGPT and image generator Dall-E. Microsoft previously had invested in OpenAI in 2019 and 2021. Here are some key takeaways from each companys latest earnings report, as well as how Apple and Microsoft scored on a few key investment metrics as of Feb. 6, 2023. It generated a whopping $89 billion of cash flow in the last full fiscal year (ended in June), compared to $77 billion in fiscal 2021. On June 4, 2018, Microsoft acquired the popular code repository site GitHub for $7.5 billion in Microsoft stock. Nadella said the company is incredibly "bullish about what's happening in Asia," calling it a massive growth market. MSFT stock ended the regular session April 6 at 291.60. It introduced a feature called Microsoft 365 Copilot. Quhuo Ltd - ADR (NASDAQ: QH) 2. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements. Most people would be no stranger to what the company has to offer. Social Security Cuts May Be Coming. and have not been previously reviewed, approved or endorsed by any other Better still, long-term investors currently have the opportunity to begin or add to a position in this proven winner at a significantly discounted price. Recently, he has been promoting the company's advances in artificial intelligence. After the debacle of Luckin Coffee, its also clear that Starbucks should also keep a strong grip in the Chinese coffee and beverage market as well. On March 17, MSFT stock broke out of a flat base at a buy point of 276.86, according to IBD MarketSmith . Still, this is a battle that investors should watch closely. Meanwhile, Microsoft's proposed acquisition of video game publisher Activision Blizzard (ATVI) is facing challenges from antitrust regulators. The next major catalyst for Microsoft stock could be the company's March-quarter earnings report, due in late April. Shop the 65 best Christmas gifts of 2022 your boyfriend will love Microsoft for Macro savings: get Microsoft Office for just $30. The company offers investors a diverse business home to top-performing brands such as Windows, Office, Xbox, and Azure, and has expanded its dominance in multiple industries. Microsoft has a considerable market share in cloud computing, computer operating systems, and gaming. Social Security Cuts May Be Coming. It makes sense to avoid some companies in a tough selling environment, especially if they rely on debt or don't have a proven business model. According to Grand View Research, the cloud computing market will increase at a CAGR of 15.7% until at least 2030. Essentially, it boils down to if Microsoft can beat the broader market over the next three to five years. Dani Cook has no position in any of the stocks mentioned. Microsoft is fighting the lawsuit. Read our editorial policy to learn more about our process. The acquisition also faces regulatory objections in Europe. Whether theres high-inflation, deep recessions, a debt-ceiling crisis or otherwise. The Morningstar Uncertainty Rating represents the predictability of the companys future cash flows and, therefore, the level of certainty we have in our fair value estimate of a given company. Copyright 2023 Morningstar, Inc. All rights reserved. In 2021, Microsoft entered the digital advertising market by acquiring Xandr. For a $1.9 trillion company, Microsoft still reported impressive 17.9% revenue growth in 2022. The firm went public 37 years ago in 1986. Fees and account minimums vary based on the platform you use, so be sure to research these . If You Do This, You Won't Have to Worry About Them, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. Its cloud computing business, Amazon Web Services (AWS), made up 100% of its operating income in the previous quarter, while its e-commerce business saw earnings slump. In that stretch, Microsoft has grown into a $2.2 trillion behemoth and with the way it continues to position itself, it should remain relevant for many years to come. The Relative Strength rating shows how a stock's price performance stacks up against all other stocks over the last 52 weeks. Invest better with The Motley Fool. 10 best stocks to buy for 2023 list is up 13.1% through . Although the tech giant enjoys dominant market positions in attractive software, cloud services, and gaming niches, shares are trailing the market in 2022 on fears of a major slowdown ahead. At this point, it may be easier to name what Microsoft doesn't do. Our analysts think Microsofts cash flow uncertainty is Medium, while Apples uncertainty is High. The biggest potential reason not to buy AMZN right now is the good but not great 2.2% yield. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services.