To The Moon

Microsoft Corp $Microsoft(MSFT)$ is a well-established tech company with a proven history of innovation. 2022 is a tough year but the opportunity to buy MSFT stock at this price will almost certainly pay off in the long term. MSFT has been focusing on developing cloud services since 2014 when Satya Nadella took the helmet as CEO. Since then, MSFT's financial performance and stock price have been one of the best. MSFT Segment Revenues and Operating Income MSFT Segment History As you can see from the charts above, the Intelligent Cloud segment has been growing at a rapid speed and is currently almost half of MSFT revenues. The global cloud computing market is expected to reach USD 1,554.94 billion by 2030, registering a CAGR of 15.7 (ResearchAndMarkets.com report). Right now, Microsoft’s Azure is in second place globally among cloud computing providers, with a 21% market share. Other than the cloud, Microsoft also has other products and services like Personal Computing and Productivity and Business processes. And MSFT could leverage Azure and its cloud computing infrastructure to wring more revenue from its other businesses, including legacy products. Think about Software as a service (SaaS). Microsoft (MSFT) has become one of the main providers. With Microsoft, however, the layers of software have accumulated so much that it has also become an infrastructure and platform as a service, which also puts the company among an elite few, including AWS from $Amazon.com(AMZN)$ and $Alphabet(GOOGL)$ . Microsoft's switch to a subscription business initially resulted in some slower revenue growth, but when looking at the cloud-based backbone for the system, we can see it's starting to pay off. After growing 45% in fiscal 2022, Azure is the centerpiece of the new Microsoft. MSFT is a great value compounder with high ROIC of 31% TTM and 24% 5-year-average. MSFT also enjoy high profit margin showing that they have Pricing Power as their moat. Take a look at MSFT Operating Performance below. MSFT Operating Performance MSFT share price has been down -27.41% YTD and at this level, the valuation looks like a good time to buy. Take a look at the valuation table below. MSFT Valuation @TigerStars