The stocks of MSFT have been one of the major winners amidst the market crash caused by the coronavirus pandemic- with it up by 37% this year. Yet, this doesn’t seem to inspire joy among the investors, who believe that the steam might just be out of the company. Why so?
The success of MSFT for this year can be attributed to the Teams division. The Microsoft Teams have been progressing and developing exponentially throughout the year, something that has fit in well with the demand for remote work.
What Was the Reason Behind MSFT’s Meteoric Rise?
In October, the stocks of MSFT reported a 50% increase in the activity of the team for the last half a year. But let it not be said that the growth shown by the company was simply spearheaded by the Teams division, as they were a couple of rumored investments too. It was circulated that Microsoft would buy TikTok. To put gasoline into the inferno, the gaming division of the company also made news with the ZeniMax Media buyout.
The year was big for the stocks of MSFT, one of the few companies that actually got to reinvent themselves. And simply, because it had to justify its position as one of the giants in the tech industry. Despite the Tiktok buyout never coming to fruition, the hype with the other ventures did ensure that Microsoft was up and about, but things seem to have changed. The hype surrounding the giant conglomerate is fading, despite several reasons of bullishness shown towards the stocks of this company.
One of the reasons why the pandemic catalysts of Microsoft is displaying hindrances is due to much stronger rivals. With CRM already planning to acquire Slack Technologies, the gauntlet has been thrown. This move by CRM is definitely going to make MSFT sit up and realize there are strong rivals in the field.