Is Microsoft a Buy?

Microsoft (NASDAQ:MSFT) has been one of the top names in tech for decades, and with a market capitalization of over $1 trillion, it's one of the most highly valued companies today. Even amid rising competition from some big names in the industry like Apple and Amazon.com, the company has been able to not only keep growing its sales but to significantly expand its profits along the way as well.

Up 200% over the past five years, Microsoft has remained a strong investment. But let's take a closer look at where it is today and whether it's still, at a rather high earnings multiple, a good buy or not. Microsoft recently released its fiscal first-quarter earnings for 2020, and yet again, the stock surpassed expectations with earnings per share of $1.38 and revenues of $33.06 billion. However, beating expectations has been the norm for Microsoft, and that's why a strong performance is usually not enough for the stock to get a big boost. While you won't be getting a bargain by buying shares of Microsoft today, it is a quality, long-term investment that can generate some solid returns for you over the years.

Source: Motley Fool

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