Microsoft is one of the world's largest companies. However, as of late, the company has been struggling as the result of poor sales of its operating system known as Windows. However, Windows is changing; and so too are analyst opinions of the stock. Today, we'll talk about how Microsoft is changing Windows, what one recent analyst said as the stock was upgraded, what we can expect to see moving forward and how binary options traders can profit from the trends.
How Microsoft Is Changing Windows
If you're a computer users, chances are that you've heard of or even use Windows. The operating system is one of the most, if not the most popular in the world. However, the company has been having problems selling the operating system as of late; a fact that many attribute to the price tag associated with the OS. However, that is all changing with Windows 10.
Microsoft recently announced that their most recent version of Windows, Windows 10, will be given away for free. Although that may seem like a bad idea in the beginning, when you look at the entire plan, the profitability becomes clear. While Windows 10 is free, it acts more like a Trojan Horse. The operating system connects users to the Microsoft ecosystem. Once the users are in the ecosystem, they will have the ability to purchase apps and programs designed to generate a better user experience around the operating system.
This business model is actually nothing new. As a matter of fact, the entire industry of Freemium Gaming was built around this very concept. If you've followed tech, you know that Freemium Gaming has grown to become an incredibly large industry. So, it wouldn't be surprising to find out that Microsoft's move to turn Windows 10 into a free operating system turned out to be an incredibly profitable endeavor.
Microsoft's Recent Analyst Upgrade
Because of poor Windows sales, Microsoft has been struggling to find analyst approval. However, that seems to be changing. On Thursday, Microsoft's stock received an upgrade from Stifel Nicolaus as a result of the changes the company has been making to their business model under the leadership of their new CEO, Satya Nadella. Stifel Nicolaus increased their rating on the stock from a “hold” to a “buy”; giving Microsoft a new target price of $55. In the analysts' report, they stated that the rating was based on strong changes to the company under Nadella's leadership. Here's what they had to say…
What We Can Expect To See Moving Forward
Moving forward I'm expecting to see overwhelmingly positive news from Microsoft as Nadella continues to make changes to the company's business model. Not only is the company changing focus to become more ingrained in the Internet of Things, they are showing incredible discipline leading to sales that grow faster than operating expenses. All in all, investors have plenty to be excited about with regard to Microsoft at the moment.
How Binary Options Traders Can Take Advantage Of The Trends
Since it's our opinion that Microsoft is likely to grow in both the short and long term outlook, the most profitable trade opportunity on the stock is likely to be call options. With that said, binary options traders should follow the stock in dips until it reaches support. From there, purchasing calls to ride the trend up to profits is likely to be the most profitable move.
What Do You Think?
Where do you think Microsoft is headed and why? Let us know in the comments below!