With Core Businesses Slumping, How Should You Trade Microsoft Corporation (MSFT)?

Satya Nadella is pulling all necessary strings in order to create a Windows Ecosystem, much like the Apple ecosystem. He is trying to pull the company out of businesses which might not contribute towards the ecosystem. In one such effort, he announced a few weeks back that more job cuts would be forthcoming in the phones business in the near future. Microsoft shares are down by 3.15% year-to-date, taking into account the 3.68% fall yesterday.

Sandy Nairn’s Edinburgh Partners opted to reduce its holding in Microsoft Corporation (NASDAQ:MSFT) by 3% during the second quarter, despite the fact that the stock jumped by around 8.6% during those three months. Jeffrey Ubben of ValueAct Capital was among the primary investors of the technology company, with an investment of $3.06 billion consisting of 75.27 million shares as of March 31. Christopher Medlock James’ Partner Fund Management cut the largest investment of all the hedgies tracked by Insider Monkey. Partner Fund Management sold all of its 5.6 million shares during the first three months of the year. Michael Messner’s fund, Seminole Capital also sold all of its 3.1 million shares.

Microsoft Corporation (NASDAQ:MSFT) has displayed significant growth in certain sectors, but also showed decelerating growth in certain other important sectors like its Cloud business. This slowing growth in cloud has prompted the sell-off by investors yesterday. Considering the fact that the future of Microsoft is still uncertain, we don’t recommend a buy on this stock at the moment.

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