Microstrong

With Windows 10 running on more than 900 million devices, and a market value recently near $1.4 trillion, Microsoft (Nasdaq: MSFT) is huge. It’s hard for huge companies to grow as briskly as smaller ones, but for the fiscal 2020 second quarter (which ended Dec. 31), Microsoft reported revenue of $36.9 billion, up 14% year-over-year, while its diluted earnings per share soared 40%.

Microsoft has the brand recognition, network-effect advantage, and resources to continue winning in the markets it serves. Its Office software, featuring Word and Excel, is still in high demand after all these years. Office commercial products, including Office 365 subscriptions, have been growing quickly.

Under CEO Satya Nadella, the company has spread its reach well beyond the PC to mobile devices and the cloud. Microsoft’s Azure cloud computing service has tremendous momentum, with revenue surging 62% year-over-year in the last quarter.

Microsoft’s ability to adapt to changing environments in technology, such as via its cloud-computing offerings, bodes well for its future, and investors should also like its high profit margin and growing dividend. Owning this stock seems like a no-brainer for the 21st century. (The Motley Fool owns shares of Microsoft and has recommended Microsoft shares and also the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft.)