Some companies happen to be solid investments in any market. In the technology sector, Microsoft Corporation (NASDAQ:MSFT) is certainly one of those companies right now. Microsoft, like other high-quality, high-growth tech plays rarely go on sale. Investors have piled into what they view as safe places to park their cash (rightfully so) in this market.
Microsoft is certainly a software company with high margins and excellent growth fundamentals, but I view this company in many ways as like quasi utilities-play. Let me explain.
Think of the world without Microsoft and its suite of products. Nearly every company in the developed world runs on Microsoft’s suite of Office products. Moreover, the company’s video conferencing business Skype and cloud computing business has accelerated through this coronavirus pandemic.
This fact highlights the importance of Microsoft products in our everyday lives. This makes Microsoft products almost as important as electricity to the modern-day corporation. Corporations would have to shut down tomorrow without Microsoft products, just as they would not be able to function with electricity. The reliance of today’s corporations on Microsoft is a key fundamental driver I think is often underestimated in terms of importance by some investors.
Despite fluctuating downward, Microsoft shares are cheaper, but still not as cheap as some peers, and for good reason. This is as high quality of a company as one can get in the tech sector right now.
Invest wisely my friends.