Microsoft Corporation Intrinsic Value – Microsoft Reaches Record Highs Under Satya Nadella’s Leadership Amid OpenAI Controversy
November 21, 2023
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Microsoft Corporation ($NASDAQ:MSFT) is an American technology company that is a leader in the global market for computer software, hardware, and services. Under Nadella’s leadership, Microsoft has been finding success in many areas, including cloud computing, artificial intelligence, and gaming.
However, this success has been dampened somewhat by controversy surrounding Microsoft’s involvement in OpenAI. OpenAI is a research laboratory focused on artificial general intelligence, or AGI. Microsoft has recently partnered with OpenAI to provide cloud computing resources and financial support for their research. This decision has caused a lot of backlash from some people who feel that OpenAI’s research could be dangerous in the wrong hands. Despite this controversy, Microsoft’s stock continues to reach record highs under Nadella’s leadership.
Price History
Under Satya Nadella’s leadership, Microsoft achieved record highs on Monday with its stock opening at $371.2 and closing at $377.4, a 2.1% increase from its previous closing price of $369.8.
However, Microsoft’s success has not come without controversy. Recently, the company drew criticism from some of its employees over its involvement with OpenAI, an artificial intelligence research lab co-founded by Elon Musk. The employees were concerned about OpenAI’s potential involvement in creating weapons or other military applications. Despite this, Microsoft and OpenAI are still working together to develop AI technology that could benefit the public. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Microsoft Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 218.31k | 77.1k | 35.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Microsoft Corporation. More…
| Operations | Investing | Financing |
| 94.97k | -19.05k | -18.29k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Microsoft Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 445.79k | 225.07k | 29.71 |
Key Ratios Snapshot
Some of the financial key ratios for Microsoft Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.1% | 18.7% | 44.4% |
| FCF Margin | ROE | ROA |
| 29.0% | 28.4% | 13.6% |
Analysis – Microsoft Corporation Intrinsic Value
At GoodWhale, we have analyzed the financials of MICROSOFT CORPORATION and found that its fair value is around $320.4. This is calculated by our proprietary Valuation Line, which takes into account the company’s fundamental financials such as revenues, expenses, assets and liabilities. Currently, MICROSOFT CORPORATION stock is traded at $377.4 – a fair price that appears to be overvalued by 17.8%. This means that investors in the stock may have to pay more than the actual worth of the company – which may not be the best financial decision in the long run. Our goal is to provide investors with the most accurate financial information to make sound investment decisions. We strive to connect investors with the right companies and ensure a secure return on their investments. More…
Peers
In the business world, there is always competition. For Microsoft Corp, its main competitors are Salesforce Inc, Apple Inc, and DocuSign Inc. While each company has its own strengths and weaknesses, Microsoft Corp must always be aware of what its competitors are doing in order to stay ahead.
– Salesforce Inc ($NYSE:CRM)
Salesforce Inc is an American cloud-based software company specializing in customer relationship management (CRM). As of March 2021, it had a market capitalization of US$153.53 billion, making it one of the most valuable companies in the world. Its Return on Equity (ROE) was 0.08%.
Salesforce was founded in 1999 by Marc Benioff and Parker Harris, and has since grown to become one of the largest CRM companies in the world. The company’s flagship product is its customer relationship management software, which helps businesses manage their customer data, sales, and marketing. Salesforce also offers a number of other software products and services, including a cloud-based development platform, a social networking service, and a customer service platform.
– Apple Inc ($NASDAQ:AAPL)
Apple is one of the world’s leading technology companies, with a market cap of 2.31T as of 2022. It designs, manufactures, and markets a range of mobile communication and media devices, as well as personal computers, portable digital music players, and sells a variety of related software, services, accessories, networking solutions, and third-party digital content and applications. The company has a strong focus on innovation and has been rewarded with a return on equity of 162.51% over the last year. This demonstrates the success of its business model and the confidence that investors have in its future prospects.
– DocuSign Inc ($NASDAQ:DOCU)
DocuSign Inc. is an American company that provides electronic signature technology and digital transaction management services for facilitating electronic exchanges of contracts and other documents. The company has a market capitalization of $9.74 billion as of 2022 and a return on equity of -15.28%. Founded in 2003, DocuSign has over 700,000 customers and more than 85 million users in 188 countries. The company’s headquarters are located in San Francisco, California. DocuSign’s primary product is its electronic signature platform, which enables users to sign, send, and manage documents electronically. The platform is used by businesses of all sizes, including over 90% of the Fortune 500. In addition to its signature platform, DocuSign offers a suite of products for digital transaction management, including contract management, workflow automation, and compliance tools.
Summary
Microsoft Corporation‘s stock has recently hit an all-time high, a testament to the success of CEO Satya Nadella and his strategies. This follows a controversial announcement from Microsoft’s OpenAI division, which has caused some uncertainty in the market.
However, this has not deterred investors from purchasing Microsoft stock, which is considered a reliable long-term investment option. Investors are impressed with Microsoft’s diversified portfolio, which includes cloud services, gaming systems, and enterprise software solutions. Microsoft also maintains strong partnerships with technology leaders such as Amazon and IBM, providing further confidence in the company’s future prospects.
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