To analyze if MSFT stock price will touch to $ 300 in 2021 or not, we need to analyze the upcoming events of MSFT. Prior to the launch of the Xbox Series X, Microsoft also announced a new partnership with GameStop. The two companies will work together to bring more customers to the Xbox ecosystem. GameStop offers a monthly payment plan that allows customers to purchase X and S series consoles at a lower upfront cost. As you may know, the popularity and power of instalment payments increased during the pandemic. In essence, this looks like the year Microsoft made its way into the console war.
In our view, this is an area that could prove to be Microsoft’s next key issue for the next quarter. Fortunately, when evaluating a company in a broader context, these pain points are relatively limited. Note that gross profit for this segment of Microsoft’s Commercial Cloud brand (Dynamics 365, Office 365, Azure, LinkedIncomm in general) increased by hugely. This makes Commercial Cloud’s gross profit the first in Microsoft’s history.
Present capital structure
With Microsoft’s recent acquisition of Zenimax Media for $ 7.5 billion, these results naturally follow the positive news from M&A. Experienced gamers might remember that Zenimax Media is the company that makes classic video games like Quake and has launched Doom. So, this looks like an addition that could spark new interest in Gen X era demographics among gamers. Additionally, Microsoft appears to have spent a lot of time with images in the wider market. At this point, we’re probably familiar with the policy mistakes related to the potentially controversial business of buying the controversial TikTok social media app, so we won’t go into detail here.
Needless to say, these arguments turned out to be dire flaws and this poor display of negotiation skills added another “black eye” to the company. Since the start of the year, MSFT shares have risen by around 38%, but the shares are struggling near resistance levels of $ 232.80, which is an attractive range for buying. With stocks outperforming the S&P 500, MSFT could experience a significant drop if increased volatility negatively affects equity benchmarks. Well, negative news can lessen the MSFT stock price to $ 195 in short term. I think the price fluctuation can be adjusted with periodic or systematic investment. However, for the attractive outlook of tech companies, the price can go up to $300 if the innovative projects of the company get success. However, the target price of $ 300 is a little aggressive. You can check other information like income statement at https://www.webull.com/income-statement/nasdaq-msft before stock buying.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.