Microsoft – Momentum Securities stock pick of the week

Momentum’s leading stockbroking division – Momentum Securities – brings you their Stock Pick of the Week

About: Microsoft Corporation is an American multinational technology corporation which produces computer software, consumer electronics, personal computers, and related services.

Serfaas Badenhorst, Momentum Securities Portfolio Manager for the Cape Town region, shares his insights.


Our stock pick of the week is the stock that is associated with growth and steadiness so much that is sometimes quite boring to speak of, but it’s a quality company that you must have in your portfolio. The company that I am referring to is Microsoft.

Microsoft is set to release its earnings for the fourth quarter and estimates are that it will be around $50 billion for the last quarter and that’s a year-on-year jump of 18% in earnings. With revenue being estimated to be up by 14%.

Microsoft has various income streams which makes it a very attractive investment as well. From its Microsoft Outlook capabilities to the cloud services, Xbox and various others. Microsoft’s management is also seeing a big focus on gaming where they feel there is a lot of potential for further development and some additional revenue being generated by this segment in the future.

As mentioned in our previous video, we are seeing the difference between growth stocks and value stocks. Growth stocks will lag the value stocks going into the new financial year because of the fears of inflation, and we are actually seeing it happen now.

A quality company like Microsoft doesn’t give you a lot of opportunities to get in at decent levels and with growth stocks lagging in at this stage, it’s a great opportunity to add Microsoft to your portfolio. And that is why our stock pick of the week is Microsoft.

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