BEGIN ARTICLE PREVIEW:
Microsoft (NASDAQ:MSFT) remains a very good bet for longer-term investors. Its cloud business remains strong and should greatly benefit from its huge government contract, while MSFT stock is poised to continue getting a boost from the work-from-home trend.
Source: NYCStock / Shutterstock.com
Still, I agree with other InvestorPlace columnists who recommend that investors wait for a deeper pullback in the shares before buying them. Recent sales by two important company insiders leave me more convinced of the prudence of such a course of action.
The growth of Microsoft’s cloud business, Azure, slowed slightly in the second quarter due to IT spending weakness amid the novel coronavirus pandemic.
The unit’s revenue, however, still jumped 47% year-over-year, and research firm Canalys recently reported that its share of the cloud services market had risen to 20% from 18% during the quarter.
And Zack’s recently reported that the company is investing in Azure by adding technologies like Kubernetes and GitHub Actions. The plan is to automate the code-checking process and launch apps to make the platform even more attractive.
A Closer Look at MSFT Stock
Earlier this month, the Pentagon reaffirmed that Microsoft had won the Defense Department’s $10 billion JEDI cloud contract. …
END ARTICLE PREVIEW