A closer look at Microsoft


Microsoft has bounced back and touched the $200 mark this week, hovering above its previous highest point at $190 last February 2. MSFT.US rallied by 51% from its lowest dip this year at $132, days after the coronavirus outbreak was declared a pandemic. We can see thatMSFT.US has turned the tide with strong performance after the sell-offs in March.


MSFT.US 4H chart, 20-, 50-, 100-, and 200-day SMA, SimpleFX WebTrader

Microsoft bravely defied the storms of the present economic crises as markets plummeted starting mid-March. COVID-19 had minimal impact on the company's revenue, citing that its $35 billion revenue for Q3 FY20 ending on March 31 was more than what analysts estimated ($33.6 billion). Since the beginning of the year,Microsoft stocks (MSFT.US) climbed by 25% amid the struggling global markets. It is up by 133% since January 2018.


MSFT.US daily chart since January 2, 2018, SimpleFX WebTrader

As people stayed at home to keep away from infection, Microsoft's remote-friendly applications such as Skype, Office 365, and Microsoft Teams became household names for collaborative work and learning online. The company reports a surge in usage in Microsoft 365 including Azure, Teams, Windows Virtual Desktop, advanced security solutions, and Power Platform. Xbox Live has also seen unprecedented demand with a 50% increase in players in multiplayer gaming.

As businesses today heavily relied on cloud-based services to widen online exposure, Microsoft's revenue is expected to continuously rise. Microsoft Teams, formerly Skype for Business, is a leading hub for digital team collaboration, reporting over 75 million active users in April and serving 200 million daily meeting participants. Microsoft Azure grew 59% and Office 365 is up by 25% from last year's quarter.The company's earnings per share jumped 23% year over year.

Microsoft currently ranks #13 on Forbes' Global 2000 list with a market value of $1.359 trillion. Analyst forecasts for the tech giant include a 13% rise in revenue and 20% in earning in fiscal 2020 ending in June.

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This article was submitted by SimpleFX.