Microsoft (MSFT) stock has recently soared to a record high, leaving investors wondering if they should jump in before it potentially skyrockets further.
MSFT is currently trading at $230 a share, increasing its market cap to an astonishing $1.6 trillion. This is an impressive feat, especially considering the stock has risen over 130% since early 2020 and over 40% since January 2021.
What’s contributing to the stock surge? Microsoft’s performance has been nothing short of stellar. Last quarter, the company reported above-expectations top and bottom-line results, fueled by a host of new products and services.
These include the Azure cloud platform, Office 365, Dynamics 365, and Teams, which is now one of the world’s leading online communication and collaboration tools. This is in addition to the immense demand for Xbox consoles and services such as Game Pass Ultimate.
There’s also the potential for growth stemming from M&A opportunities. Microsoft recently announced a $19 billion acquisition of the Nuance health AI group, which should further enhance its healthcare offering and improve its competitive position.
These factors have convinced many investors that MSFT is a great long-term investment and there is more upside to come. The only real question is whether now is the right time to buy before the stock potentially skyrockets further.
In our opinion, MSFT is presenting an opportunity with plenty of upside and should be viewed as part of a long-term portfolio. The company looks set to continue its innovation and acquirers, while the market will present additional opportunities over time.
That said, investors must ensure they do their due diligence and assess their risk tolerance before investing. MSFT’s impressive run could prove to be merely a head fake, with volatility and risk coming in a different form.
Overall, MSFT is looking as strong as ever and should be seen as a great long-term holding. For those who are confident in their risk profile and want the potential upside of a market leader, now could be the right time to invest.