678 Billion Reasons to Invest in Microsoft Stock
The tech giant is getting its mojo back.
Overview
Microsoft (NASDAQ: MSFT) has not performed well this year. Investors are worried that artificial intelligence (AI) will replace many of the company's services, a sentiment that has put downward pressure on much of the software industry. Meanwhile, the company's heavy investments in AI may lead to lower profits and margins, or so the argument goes. However, Microsoft proved some doubters wrong with its latest earnings report, for the fourth quarter of its fiscal year 2026, which ended on June 30.
The company's revenue increased by a healthy 18% year over year to $90 billion, and even with massive AI investments, adjusted earnings per share climbed 23% year over year to $4.74. Microsoft's stock soared by 15% following its quarterly update, but there is one key reason -- or several hundred billion -- why there may be more upside ahead. Here's what investors need to know.
Image source: The Motley Fool.
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Originally published at www.fool.com.