Microsoft's fast-growing cash flow and dividends will push shares higher. Parkev covers consumer goods and technology companies for Fool.com, Cumulative Growth of a $10,000 Investment in Stock Advisor, Here's Why I Think Microsoft Is a Better Buy Than Amazon @themotleyfool #stocks $MSFT $AMZN, Prime members also shop more than non-Prime members, Forget FAANG, Buy These 4 Top-Notch Stocks Instead, Buy Alert: Microsoft Stock is Headed Higher, MANA Stocks vs. FANG Stocks: 2 Years Later, Microsoft Is Bringing Xbox Game Pass to iOS, but With a Catch, Microsoft Embraces the Work-From-Home Trend, Copyright, Trademark and Patent Information. Stock Advisor launched in February of 2002. Let's conquer your financial goals together...faster. However, Microsoft offers revenue growth along with consistent profits. Prime members also shop more than non-Prime members, a powerful one-two punch for Amazon. As Microsoft Corp. and Sony Corp. prepare to launch their new video-game consoles, another legendary player, Atari, is readying its first new hardware in more than 20 years. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups. Generation Investment Management, which is chaired by former vice president Al Gore, sold Amazon and Microsoft stock in the first quarter. Apple stock slipped 13.4% in the first quarter, but it has rebounded in the second with a 17% rise. A compelling bullish opportunity in any other circumstance, the new normal has further bolstered the case for gaming stocks to buy. Significantly, this is in stark contrast to Amazon, which at times shows disregard for margins, as it invests in growth. This copy is for your personal, non-commercial use only. Microsoft's $7.5 billion buyout of ZeniMax Media is a big win for MSFT stock; however, there are still a few nuances to consider moving forward. It provides growth opportunities in the cloud space, combined with a steady stream of cash. Remdesivir, the Gilead antiviral, received emergency-use authorization on Friday from the Food and Drug Administration to treat Covid-19 patients. Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Microsoft won in that instance, though Amazon is contesting the award, but let's consider which of the two is a better investment. When Microsoft posted its second-quarter results recently, it boasted an excellent 32% net profit margin, which was up from 26% the year prior. But now, those qualities are even more valuable for both conservative and risk-tolerant investors. Fiscal-third-quarter earnings were strong , and we noted that many on Wall Street were upbeat on the shares. Microsoft Corporation (NASDAQ: MSFT) co-founder Bill Gates said Thursday at the GeekWire Summit that a more in-depth and company-specific approach is required by regulators... What Are The Best Tech Stocks To Buy Now? Amazon's fourth-quarter earnings report revealed an increase of 34% in revenue from its AWS cloud division, outpacing the growth rate in the business's other divisions. All rights reserved. A stock is cheap or expensive only in relation to its potential for growth (or lack of it). If a company’s share price plummets, its cost of equity rises, also causing its WACC to rise. The asset-management arm of Canadian banking giant Canadian Imperial Bank of Commerce made some material adjustments to its stock investments in the volatile first quarter. Fiscal-third-quarter earnings were strong, and we noted that many on Wall Street were upbeat on the shares. Once it breaks above double top resistance it could easily see $600, near-term. This copy is for your personal, non-commercial use only. MSFT stock is worth $309 per share, or about 49% higher than today. As Ars Technica has noted, though, there’s a vague line buried in there that deserves more attention: “GameStop and Microsoft will both benefit from the customer acquisition and lifetime revenue value of each gamer brought into the Xbox ecosystem.”, Atari Seeks New Cachet With Crypto — And a Return to Hardware. Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) subsidiary Google said Thursday that it would make its Chat service available for free to all users beginning the first half of 2021.... Bill Gates Says Tech Giants Should Be Probed Separately If Regulators 'Want To Get Serious' About Antitrust Concerns. I’d back up the truck on the NVDA stock. Copyright © 2020 InvestorPlace Media, LLC. But you should also spare some time to consider the best 401k investments. https://www.barrons.com/articles/bank-bought-apple-microsoft-stock-sold-gilead-51588698034. 2 with 17%. Investments it has made in its fulfillment capabilities are bearing fruit as customers prefer Amazon's convenient and reliable shipping options and pay up as Prime members to get them. An error has occurred, please try again later. Louis Navellier and the InvestorPlace Research Staff, 20 Election Stocks to Buy if Donald Trump Wins in 2020, Even After Strong Year, Microsoft Stock Remains a Buy-And-Forget Stock, 12 5G Stocks to Buy for Election-Proof Results, Huge Option Premium While Microsoft Waits for “Tech Support”, The 7 Best 401k Investments to Enrich Your Retirement, How to Navigate This Week’s Market Volatility, Microsoft’s Cash Flow and Dividends Will Push Its Stock Higher, Microsoft Stock Is Still Worth Owning Even Without TikTok, Expect More Gains With Microsoft Finally Shedding Its Boring Image. Market data powered by FactSet and Web Financial Group. 1125 N. Charles St, Baltimore, MD 21201. Amazon is also the leader in an incredibly fast-growing public cloud market, capturing an estimated 32% of worldwide cloud infrastructure spending in 2019. quotes delayed at least 15 minutes, all others at least 20 minutes. When deciding whether a stock is cheap or expensive, consider how interest rates on other investments work relative to stock values. Mzengeza said Microsoft offers productivity tools that benefited from tailwinds as homebound white-collar workers acclimated themselves to handling tasks remotely. Find the latest Microsoft Corporation (MSFT) stock quote, history, news and other vital information to help you with your stock trading and investing. stock (MSFT) in the quarter, and halved its holdings in Amazon is still growing product sales double digits. Amazon boasts remarkable growth, leadership in the cloud space, and over 150 million Prime members. I see two main reasons to like Amazon: its success with its Prime membership service and the success of its AWS cloud products. 2020 InvestorPlace Media, LLC. Amazon and Microsoft had beat out other competitors and were up against each other head-to-head in the final round. U.S. Prime members pay $119 for the annual plan and get access to content including audiobooks, streaming video, music, and e-books, and free shipping on over 100 million items. Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) both recently reported blowout earnings, and both stocks are on fire lately. Gilead Sciences Opponents of major cloud companies are now using courts, political pressure and even geopolitics to destroy these tech stocks' cash flow. 1125 N. Charles St, Baltimore, MD 21201. According to IDC, worldwide spending on public cloud services is forecast to grow from $229 billion in 2019 to almost $500 billion in 2023. Microsoft stock ended the first quarter flat, but in the second it has gained 14.6%. The companies published a press release about their collaboration last week, but it mostly focused on GameStop employees using Microsoft’s cloud solutions and hardware products. Nasdaq Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The bank also added 165,651 Microsoft shares to end the first quarter with 1.6 million of the software giant’s shares. Its balanced approach and healthy margins are reducing Microsoft's risk and lifting it over Amazon's incredible growth potential. Gilead rose earlier this year on speculation that it could come up with a treatment for Covid-19, although the degree of its rise confounded analysts. We've detected you are on Internet Explorer. Copyright © With that in mind, let's look at the charts. Microsoft's reliable profit margins and revenue growth make its dividend sustainable for the long term. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. Matt McCall and the InvestorPlace Research Staff, GameStop will get a cut of digital revenue from every Xbox it sells, Microsoft and GameStop have inked a deal that would give the latter a portion of the tech giant’s digital sales revenue for every next-gen Xbox the gaming retail chain sells.