Cloud focus fuels Microsoft

Article Excerpt

Microsoft recently surpassed Apple as the world’s most valuable company (based on market cap). That’s because it continues to expand in the fast-growing field of cloud-computing, which lets users run computer programs over the Internet. That strategy relies on a subscription model and has cut the company’s dependence on selling individual software packages to consumers and businesses. Higher renewal rates have also cut cyclical risk. At the same time, the shift to cloud computing reduces the revenue lost to software piracy. Microsoft has gained over 20% in the past year. We feel it has more gains ahead. MICROSOFT CORP. $104 (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.7 billion; Market cap: $800.8 billion; Price-to-sales ratio: 6.9; Dividend yield: 1.8%; TSINetwork Rating: Above Average) began operating in 1975 and is now the world’s largest computer software company. Its Windows operating system powers about 80% of the world’s personal computers. Microsoft’s other main product—its Office suite, which includes a word processor (Word), spreadsheets…

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