But is Microsoft stock a buy for new money? Or is the run about to end?
Charles Sizemore, editor of Macro Trend Investor, talks with me about MSFT stock (which he personally owns in his portfolio) and why it remains a good investment.
Namely, Charles points to Microsoft slowly starting to figure out its mobile business as evidenced by recent Surface sales growth. And the company just reported record revenue, so it’s not like the MSFT universe is falling apart anytime soon.
As Charles puts it, the potential of mobile and even the Xbox video game arm gives MSFT investors an “embedded call option” on the business. If nothing comes of them, the enterprise footprint of Microsoft and potential long-term dividend growth makes MSFT stock a good value play.
And if Microsoft continues to see success with its video game platforms, and if 2014 is indeed a turnaround year for MSFT mobile devices as BlackBerry (BBRY) falls apart, and if businesses give Windows Phones a shot instead of Android gadgets from Google (GOOG) or the Apple (AAPL) iPhone … well, it could be a very profitable trade to get into MSFT stock even after the run.
View the video for more details.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP.