Microsoft: From Bing To The Cloud, Making All The Right Moves
Tigress Financial Partners has upgraded Microsoft Corporation (NASDAQ: MSFT) from Neutral to Buy and believes management is pulling all the right strings with its strategic direction. In a new note, analyst Ivan Feinseth said the combo of improving business fundamentals and aggressive capital return is a recipe for outperformance from Microsoft.
Azure, Bing and Xbox
“We believe MSFT’s expanding cloud transition strategy including Azure, the subscription-based Office 365 model and the future integration with LinkedIn along with new initiatives in Artificial Intelligence (AI), search, gaming and other new products will begin to drive a new acceleration in Business Performance,” Feinseth explained.
He believes Microsoft Azure has closed the gap to become real competition with leading cloud services company Amazon.com, Inc. (NASDAQ: AMZN).
He noted that Microsoft’s Xbox has become much more than simply a gaming device.
“MSFT is also one of the largest publishers of video games and its Xbox console serves as a web-based household gaming and entertainment platform enabling subscribers to play multiplayer games and access non-gaming entertainment,” Feinseth wrote.
Microsoft's stock is off to a solid start so far in 2017, up 1.2 percent in the opening weeks of the year.
Latest Ratings for MSFT
|Jan 2017||Tigress Financial||Upgrades||Neutral||Buy|
|Jan 2017||Wells Fargo||Initiates Coverage On||Outperform|
|Dec 2016||PiperJaffray||Initiates Coverage On||Overweight|
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