With shares of Microsoft (NASDAQ:MSFT) trading around $32, is MSFT an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Microsoft is engaged in developing, licensing, and supporting a wide range of software products and services. The company also designs and sells hardware and delivers online advertising to customers. It operates in five segments: Windows and Windows Live, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices. As a mature company, Microsoft is also offering a stable dividend, which is currently yielding around 2.92 percent annually.
Microsoft should count founder Bill Gates out as a possible replacement for CEO Steve Ballmer, who made the surprise announcement last month that he’ll leave Microsoft sometime in the next year. Gates has said he’s not interested in working at Microsoft full-time, as running his charity foundation is his full-time job, according to an interview with Business Insider. Ford (NYSE:F) CEO Alan Mulally and Computer Sciences (NYSE:CS) CEO Mark Lawrie are rumored to be at the top of Microsoft’s CEO wish list.