![]() ![]() VISUAL STUDIO 2022 COST DRIVERNET ecosystem is Microsoft's growth driver inside the $389 billion (2020 estimate) custom software development industry. Microsoft also offers its Visual Studio Enterprise IDE for $250/month so people can develop. Anything that helps sustain Microsoft's $30.4 billion/year Azure business is worth discussing here at Seeking Alpha. Microsoft is also marketing cost-savings if developers host their. Microsoft Edge's browser market share is 10.84%. Microsoft is never going to make it big in digital display ads because its Bing Search still has less than 9% market share in usage. NET business is more important than Microsoft Ads. Investors should evaluate the rarely discussed contribution of the 20-year-old.NET ecosystem. Microsoft's growth potential is not limited to Microsoft 365. Losing to Google Workplace contributes to the big decline in MSFT's stock price. On the global stage, Google Workplace has 48% and Microsoft 365 has 46%. It is alarming that Google ( GOOGL) Workplace now enjoys 59.41% market share in U.S. So is the $24/year German-made SoftMaker Office Universal NX.Īs per Microsoft's FY 2022 report, the productivity and business processes earned $63.4 billion. The freemium made-in-China $29.99/year WPS Office is another headwind for Microsoft 365. ![]() ![]() The Canva Office Suite will take customers away from the $9.99/month Microsoft 365. VISUAL STUDIO 2022 COST PROAdobe's ( ADBE) Creative Cloud suite of software has less customers because budget-conscious businesses/individual can subscribe to Canva Pro for their graphic content projects. Canva became a $ 40 billion unicorn because of its affordable templates-based graphic design business. Microsoft's revenue CAGR could fall below 12% if more companies imitate Canva's move to challenge Microsoft 365. The massive success ( 48.08% market share) of Microsoft 365 has inspired Canva to launch its own online office suite. VISUAL STUDIO 2022 COST FREEMicrosoft 365 has fierce competition from cheaper or even free alternatives. MSFT therefore is clearly not a high-growth stock.Īzure remains a far second to AWS in cloud infrastructure market share. Investors are perhaps realizing that MSFT's 5-year revenue CAGR is less than 16%. The decline of MSFT is due to profit-takers, bearish investors, and skeptics. It is a blessing that Microsoft touts more than $104 billion in cash to intimidate shorts. The relatively high P/S valuation of MSFT makes it a tempting target to short sellers. Seeking Alpha Premium More Competition Is A Headwind This is significantly greater than IBM's P/S ratio of 1.83x. This relative overvaluation is best exemplified by MSFT's TTM Price/Sales valuation of 8.94x. Compared to its mega-cap software peers, Microsoft's stock is more expensive to own. In spite of the almost 30% YTD dip, MSFT remains a pricey investment. Best to wait for a cheaper buy-in window. The trade signal is it is Oversold Buried - near term bearish alert. Based on its EMA, MACD, and Stochastic indicators, MSFT will continue to decline. This is another gross underperformance against IBM's -8.92%. IBM's 6-month decline is only -7.48%, much better than MSFT's -22.15%. MSFT will likely perform worse than IBM ( IBM ). The high-valuation factor grade of MSFT is D. The persisting bearish emotion of the stock market convinced me that MSFT's price will continue to dip. Technical analysis of the Dow Jones Index indicates its MACD is still below zero. Microsoft ( NASDAQ: MSFT) is a high-flying stock that is now under the falling knife category. ![]()
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