MSFT - Embedded Expectations Analysis - 2019 08 06
Microsoft Corporation (MSFT:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 23.7x Uniform P/E. However, even at these levels, the market has bearish expectations for the firm, and management may be concerned about product demand, the sustainability of their market share, and revenue growth.Specifically, management may be concerned about their ability to maintain their market position in commercial cloud, and they may lack confidence in the value LiveOps brings to software developers. Furthermore, they may be concerned about competition to their Power Platform and about the sustainability of recent Xbox Live MAU growth. Moreover, they may be concerned about the sustainability of tailwinds related to their termination of support for SQL and Windows 2008, and may lack confidence in their ability to meet Windows OEM revenue growth targets.
Microsoft is a technology company. The company develops and supports software, services, devices, and solutions. The company provides an array of services, including cloud-based solutions as well as solution support and consulting services. The company also delivers relevant online advertising. The company's products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; and video games. The company also designs, manufactures, and sells devices, including personal computers, tablets, gaming and entertainment consoles, other devices, and related accessories.
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