The Nasdaq Composite Index is in the correction phase, and many big-name tech stocks are now available at a discount. This also means a great opportunity for the investors to buy good stocks.
One particular stock in the Magnificent Seven Stocks group is Microsoft. According to analysts, the MSFT stock is a must-buy and can give you the best returns on your investment.
Right now, Microsoft (MSFT) is the 2nd biggest company in the world. The company also has its stake in different sectors, which makes it highly diversified.
But even if the economy gets bad, Microsoft still has around $71.6 billion worth of cash in its hands. To make things interesting, Microsoft only has a debt of $45 billion.
Also, Microsoft made around $26 billion worth of free cash flow during the 1H of the fiscal year. This was achieved because of high margins and its strong subscription business. Also, Microsoft has an AAA credit rating which is even better than the US government!
Ever since the new CEO took office in 2014, Microsoft (MSFT) has managed to outperform the market. But its performance in the last few years was not as good as its peers.
That's why Microsoft (MSFT) is the only stock in the Mag-7 which is negative right now. But it means a good opportunity to buy the Microsoft (MSFT) stock at a discount.
Now, let's look at some more reasons to buy Microsoft (MSFT). The first one is that they have announced a 43% increase in the subscription price of Microsoft 365. This easily means more revenue and net income for Microsoft (MSFT).
Also, Microsoft (MSFT) has managed to buy 48500 Hopper GPU chips. This makes Microsoft (MSFT) a big player in the AI space.
All of this shows us that Microsoft (MSFT) is a good choice despite the short-term setbacks. So, the recent downtime can be a good opportunity to look at Microsoft (MSFT) stock.