Microsoft Corporation

Microsoft Corporation

Microsoft Corporation Jonathan Poland

Microsoft Corporation (MSFT) is a multinational technology company headquartered in Redmond, Washington, United States. It was founded in 1975 by Bill Gates and Paul Allen, and it is best known for its software products such as the Windows operating system and the Microsoft Office suite. Microsoft is one of the largest technology companies in the world, as of March 2023. It employs over 200,000 people worldwide and has a presence in more than 190 countries. Microsoft sells its products through a range of channels, including OEMs, distributors, and resellers, as well as digital marketplaces, online stores, and retail stores and operates through three main segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.

The Productivity and Business Processes segment includes a range of software products such as Microsoft Office, Exchange, SharePoint, Microsoft Teams, Skype for Business, Outlook.com, OneDrive, and LinkedIn. It also offers Dynamics 365, a set of cloud-based and on-premises business solutions for organizations and enterprise divisions. Additionally, this segment provides Office 365 Security and Compliance, Microsoft Viva, and professional services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions.

The Intelligent Cloud segment licenses a variety of software products, including SQL, Windows Servers, Visual Studio, and System Center, along with related Client Access Licenses. It also includes GitHub, a collaboration platform and code hosting service for developers, as well as Nuance, which provides healthcare and enterprise AI solutions. The flagship offering of this segment is Azure, a cloud platform that supports enterprise workloads and provides additional enterprise support, Microsoft consulting, and training and certification on Microsoft products.

The More Personal Computing segment includes licensing of the Windows operating system for original equipment manufacturers (OEMs) and other non-volume licensing, Windows Commercial for volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings. It also includes patent licensing and Windows Internet of Things. In addition, this segment provides a range of devices such as Surface tablets, PCs, PC accessories, gaming and entertainment consoles, and other devices. It also includes Gaming, which encompasses Xbox hardware, content, and services, as well as video games and third-party video game royalties. Finally, this segment includes Search, which consists of Bing and Microsoft advertising.

as of March 7, 2023

Okay, this company is massive and continues to be a leader in the technology sector. That said, it’s a $2 trillion company and how much bigger can the pie get at this point? I’m pretty bearish on the entire market right now (with some minor exceptions) and with the amount of money outpacing the value of capital it’s attached to, Microsoft is going to have a hard time growing at 10% a year. It has plenty of cash along with superb revenue and net income numbers. It would be dumb to bet against the company, even if the next decade followed the early 2000’s. I’m not saying that I think it will, just that anytime a company gets this large, the average shareholder should invest via a proxy like VOO or SPY and not directly.

Learn More
Teck Resources Jonathan Poland

Teck Resources

Teck Resources Limited (TECK) is a company involved in the exploration, acquisition, development, and production of natural resources across Asia,…

Loma Negra Jonathan Poland

Loma Negra

Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA), founded in 1926 and headquartered in Buenos Aires, Argentina, is a leading…

Vulcan Materials Jonathan Poland

Vulcan Materials

Vulcan Materials Company (VMC), founded in 1909 and headquartered in Birmingham, Alabama, is the largest producer of construction aggregates in…

AMC Networks Jonathan Poland

AMC Networks

AMC Networks (AMCX) is an entertainment firm that manages and runs a collection of video entertainment products and a platform…

Hercules Capital Jonathan Poland

Hercules Capital

Hercules Capital, Inc. (HTGC) is a business development company. The company offers a range of financial solutions such as venture…

Synopsys, Inc. Jonathan Poland

Synopsys, Inc.

Synopsys, Inc. (SNPS) specializes in developing electronic design automation (EDA) software products for designing and testing integrated circuits. Their product…

Nutrien Ltd Jonathan Poland

Nutrien Ltd

Nutrien Ltd. (NTR) is a Canadian fertilizer company. It was formed in 2018 through the merger of PotashCorp and Agrium.…

United Microelectronics Jonathan Poland

United Microelectronics

United Microelectronics Corporation (UMC) is a leading semiconductor wafer foundry, offering a range of services from circuit design and mask…

Canadian Natural Resources Jonathan Poland

Canadian Natural Resources

Canadian Natural Resources (CNQ) is engaged in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas,…

Jonathan Poland (“JP”) is a publisher, not a registered investment advisor, and nothing on this website is intended, and it should not be construed, to be investment advice. Under no circumstances does any information posted on this website represent a recommendation to buy or sell a security. The information on this site is not intended to be, nor does it constitute investment advice or recommendations. In no event shall JP be liable to any visitor or third party for any damages of any kind arising out of the use of any content or other material published or available on this site, or relating to the use of, or inability to use, any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Past performance does not guarantee future results. Read the full legal disclaimer.

Content Database

Inverted Yield Curve Jonathan Poland

Inverted Yield Curve

The inverted yield curve is a financial phenomenon that has garnered significant attention because of its historical association with upcoming…

What Is Requirements Quality? Jonathan Poland

What Is Requirements Quality?

Requirements quality refers to the extent to which the requirements for a project align with the business goals and support…

What is Media? Jonathan Poland

What is Media?

Media refers to the various channels through which information and entertainment can be delivered.

Brand Quality Jonathan Poland

Brand Quality

Brand quality is the perception of the level of excellence that a brand achieves in the eyes of its customers.…

Digital Assets Jonathan Poland

Digital Assets

Digital assets are electronic representations of value that can be traded, stored, and managed using decentralized digital technologies such as…

Turnaround Management Jonathan Poland

Turnaround Management

Turnaround management is a specialized form of management that involves developing and implementing strategies and plans to rescue an organization…

Idea Generation Jonathan Poland

Idea Generation

Idea generation is the process of generating new and original ideas. It is an essential component of the innovation process…

Over-positioning Jonathan Poland

Over-positioning

Over-positioning refers to the practice of positioning a brand in a way that is too narrow or limited, potentially limiting…

Technology 101 Jonathan Poland

Technology 101

Technology is an important component of every business, constantly reshaping entire industries. Keeping pace with new and emerging technology can…