Microsoft Price and Price Prediction

Microsoft is one of the largest transnational companies producing proprietary software for various types of computing equipment - personal computers, game consoles, PDAs, mobile phones and more. Microsoft is the developer of the most widely used software platform in the world at the moment - the Windows family of operating systems. The most famous products are the Windows family of operating systems, Microsoft Office suites, software and video game development applications (Visual Studio), various system utilities, as well as business and Internet applications. Products are sold in more than 80 countries of the world, software products are translated into 45 languages.

The company's headquarters is located in Redmond, Washington, USA. The company began its history in 1975, when Bill Gates and Paul Allen, having read an article published on January 1, 1975 in Popular Electronics magazine about the new Altair 8800 personal computer, developed a Basic language interpreter for it.

The company develops, licenses and provides support for a range of software products, services and devices. Operating segments of the Company are Productivity and business processes, Intelligent Cloud and Personalized Computing. The Company's product range includes operating systems, applications that increase productivity on multiple devices, server applications, business applications, tools for managing desktop and server systems, software development tools, video games, training and certification of integrators and developers of computer systems. The company also designs, manufactures and markets devices, including personal computers (PCs), tablets, gaming and entertainment consoles, phones, other smart devices and related accessories that integrate with its cloud solutions. The company offers a wide range of services, including cloud solutions that provide customers with access to software, services, platforms and content, as well as provides solution support and consulting services.

In January 2022, Microsoft bought video game developer Activision Blizzard. The purchase was estimated at almost $70 billion, which is a third more expensive than the market. ATVI was the largest acquisition for Microsoft in its history, as well as the largest transaction in terms of volume in the video game segment. Speaking about the fate of Activision Blizzard within the company, Microsoft notes that together with Xbox it will form a gaming direction, where it will develop content "for mobile platforms, PCs, consoles, cloud gaming and the metaverse." In other words, MSFT is aiming at adjacent markets, where it is still poorly represented.

The Performance and Business Processes segment includes products and services spanning multiple devices and platforms from the company's portfolio of performance, communications and information services. The Smart Cloud segment includes public, private and hybrid service products and cloud services of the company that can ensure the operation of any modern business.

The Personal Computer segment includes cross-platform products and services for end users, developers and IT professionals. The company also offers information systems, cross-platform productivity applications, server applications, business automation solution development, service and PC management tools, software development tools, video games, personal computers, tablets, game consoles, and a variety of smart devices and related accessories.

Cost estimate

• Market cap 1.949 T
• Company value (MRQ) 2.296 T
• Company value/EBITDA (ТТМ) 24.7644
• Total shares outstanding (MRQ) 7.479B
• Number of employees 181 K
• Number of shareholders 89.291 K

The long-term view of Microsoft is moderately positive. In October 2021, the company introduced a working version of Windows 11. Refinitiv forecasts EPS growth of 17.9% over the next 12 months with a median of +16.8% for the group of comparable companies. Analyst consensus target for 12 months is $370. As of December 2021, the consensus has been revised from $364. From a technical point of view, while the picture indicates the possibility of a decrease in securities in the region of $265 from the current $289.

Microsoft (MSFT) is the least controversial of the IT giants in the medium term - no report worse than expected throughout the pandemic. The company's business is well diversified between office software, cloud services and video games. On average, over the past five years, stocks have grown by 40% per year, over the last - by 50%.

An important advantage in Microsoft's “piggy bank” is the absence of significant antitrust claims against it. While other IT giants, especially Facebook and Apple, have been dragged through the courts all the time, MSFT has been quietly increasing sales and profits all this time. In the last seven reports, the figures were 10-50% higher than expected.