Studying companies to invest – Microsoft

in LeoFinance4 years ago


One of the most popular companies in the world, as well as one of the most valuable. Microsoft Corporation creates, develops, and manufactures computer software.


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The company also licenses, supports, and sells this software, as well as consumer electronic devices, personal computers, and other services related to this market.


While most other technology companies are focused on specific niches, Microsoft has a wide range of products and services with relevant percentages in its total net income.

The company's main products are Microsoft Office, the Microsoft Azure cloud service, and the Windows System, which together account for more than 60% of the company's revenue.

Next comes games, mainly the sale of exclusive games, Xbox consoles, and Xbox GamePass subscriptions, which together represent almost 10% of revenue.


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It also has several other types of products and services and now the company's return to the smartphone market can further expand this diversification.


Geographically 51% of revenue is generated on the domestic market in the United States and the rest by many countries, with none of them accounting for more than 10% of the company's total revenue.

Net income has been increasing steadily and significantly throughout its existence and the company also has profits and EBITDA that have always grown over the years.


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Its financial history stands out for its constant superabundant free cash flow and total cash value of more than 130 billion dollars and for this reason the company has negative net debt.


Besides all the impressive results in its history, Microsoft has been increasing the profitability of its shareholders through billionaire share repurchases.

For all that, Microsoft Corporation, without a doubt, has generated great returns for its shareholders over the years.

However, we must be aware of the fact that the company is in an extremely volatile segment, which is technology, where sudden and abrupt changes usually occur.



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Microsoft is actually a good long term investment

Yes, although I am a little afraid to invest in technology companies, as it is a very dynamic sector where very rapid changes occur. But so far it has been an excellent investment option.

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