Is Buying Microsoft Corporation (MSFT) a Smart Healthcare Play?

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If so, Caradigm could be a good way for Microsoft Corporation (NASDAQ:MSFT) to have its cake and eat it, too. The joint venture combined two Microsoft products — the Amalga health intelligence platform and Vergence single-sign-on and and context management solution — along with General Electric Company (NYSE:GE) Healthcare’s eHealth health information exchange product and Qualibria clinical application.

While it’s still a young enterprise, Caradigm has already seen some successes. The company announced recently that it reached the milestone of 1 million caregivers using its identity and access management solutions. Caradigm also entered the United Kingdom market in April.

Foolish take
Microsoft should be in position to benefit from the expansion of technology in health care. Its joint venture with General Electric Company (NYSE:GE) Healthcare enables the company to profit from new products while not alienating existing and new core customers. I think Microsoft Corporation (NASDAQ:MSFT) stock could reasonably be viewed as a quasi-health care investment.

That doesn’t necessarily make it a smart health care play, though. On the positive side, there’s a nice 2.7% dividend and nearly $74 billion of cash and cash equivalents. On the negative side, the stock is near its five-year high with analysts projecting single-digit revenue growth over the next few years. My view is that there are better choices right now than buying Microsoft stock — as a health care investment or otherwise.

The article Is Buying Microsoft Stock a Smart Health Care Play? originally appeared on and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool owns shares of General Electric (NYSE:GE) Company and Microsoft.

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