In a program on CNBC, Norman Young, senior equity analyst at Morningstar praised Microsoft Corporation (NASDAQ:MSFT) CEO Satya Nadella on his new strategies in the company. Microsoft is up by double digits since Nadella took after Steve Ballmer. Young labeled Nadella’s initiatives as strategic tinkering and said that finally, Microsoft Corporation (NASDAQ:MSFT)’s results are depicting Nadell’s efforts.
Microsoft Corporation (NASDAQ:MSFT)’s new CEO took some harsh steps in the start. He announced biggest ever job cut in the company. He also started focusing more on mobile and Cloud and thinks that Cloud is the future. Young thinks that tablets, Cloud and consumer business has started to pay off. The commercial business, Young thinks, has always been the playing ground for Microsoft. Microsoft Corporation (NASDAQ:MSFT) stock is perceived as an attractive high paying stock in terms of dividends and people buy it to get high yields from time to time. But, the latest development has proved that Microsoft is a growing stocks and has a lot of long term opportunities in it.
Young doesn’t think that Microsoft Corporation (NASDAQ:MSFT) can yet reach Apple and Samsung in the tablet and phone markets. Three quarters sales for Microsoft’s Surface tablet made around one million, which, Young thinks, makes a tiny dent in the market. Microsoft’s strong areas are still corporate software, office and Enterprise products. Latest cheap tablets from Microsoft Corporation (NASDAQ:MSFT) priced under $200 will help gain market share, which is still being consumed by Android tablets around the world.
Young estimated Microsoft Corporation (NASDAQ:MSFT) stock to be around $46. He thinks that Microsoft is a pure technology stock and has long term prospects for investors. He said that Microsoft has large competitive advantages over other companies. Microsoft Corporation (NASDAQ:MSFT) is still a hold, according to Young.
Jeffrey Ubben‘s ValueAct Capital owns over 74 million shares in Microsoft Corporation (NASDAQ:MSFT). Microsoft owns one of the 15 most visited websites in the World.
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