Microsoft: Duopolistic Behemoth Continues To Deliver

Andreas Repeta
898 Followers

Summary

  • Microsoft is at the cusp of extracting more revenue from segments unrelated to its desktop segment, showcasing a structural shift in demand for its products due to changes in technology.
  • A changing market with a developing ecosystem of internet-of-things is likely to increase demand for cloud computing and the company's Office package.
  • High forward P/E ratios are not necessarily a cause for concern as it demonstrates market participants factoring in higher future fundamental growth.

Microsoft France huvudkontor entré i Issy les Moulineaux nära Paris
Jean-Luc Ichard/iStock Editorial via Getty Images

Thesis

Microsoft (NASDAQ: MSFT) primarily relied on its personal desktop segment, with the Windows OS as a primary source of revenue. Recently, the company's other two segments, Productivity and Business Processes and the Intelligent Cloud segment, are beginning

This article was written by

898 Followers
BSc in Business & Economics.I am an avid follower of markets and mainly write long analyses of equities. Particularly interested in macroeconomics, geopolitics, and applying a topdown-view of markets. Specialized in analyzing market share and potential monopolistic, duopolistic, and oligopolistic market scenarios.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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