Microsoft Corporation (NASDAQ:MSFT) is not very far from the all time high that the stock made just recently, but is there still potential in the stock to rise even more? On Fox Business, James Frishling, President & Co-founder at of NewOak Capital LLC, gave Microsoft a buy rating on 1st October as he brought some spinoff opportunities in that conversation.
Well Microsoft Corporation (NASDAQ:MSFT) did not fare so badly since he picked the stock. In fact far from it. The stock was up about 8% for the period, as he gave further insights into where he thought the stock price was headed in the future.
” […] The spinoff conversation was about the Xbox an some of the things that I thought they might want to dispose of. I think the company is continuing to transition from PCs to Cloud and services. I do like it. It is not a screaming buy but it is a core hold for anyone in the technology space,” said Frishling.
It is not that Xbox is hurting and spoiling the valuation of Microsoft Corporation (NASDAQ:MSFT), which has a market capitalization of about $408 billion. Some analysts believe that Xbox is a thriving business, which could get even better valuation, if it was not part of the tech behemoth. Moreover, it could also help the management to focus on other businesses of the company and add value there, such as cloud related services.
Microsoft Corporation (NASDAQ:MSFT) was trading at a reasonable earnings multiple of 19.42, which might be a little on the high end when compared with that of its competitor, Apple Inc. (NASDAQ:AAPL), which was trading at 17.76 times the earnings at the closing bell of the last trading day.
On account of the recent increase in the stock price, and also declining oil prices, Microsoft Corporation (NASDAQ:MSFT) crossed Exxon recently to become the world’s second largest company in terms of market capitalization.
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