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MSFT: 3 Reasons Microsoft Stock Will Head Higher in 2015

Microsoft Corporation (NASDAQ:MSFT) is sick of being the stuffy old neighbor down the street.

Microsoft MSFT stockOver the years, we’ve had to watch a booming MSFT slowly fade from the spotlight as others wooed the crowd and ultimately stole the show.

But the sleeping giant is now awake and actively executing a comeback strategy that could put Microsoft back into the limelight. By leaving old rivals in the past and refurbishing their products, MSFT is infusing hope back into the hearts of Microsoft stock investors.

The future looks promising for MSFT in light of the changes revolving around them, for at least three reasons:

Out With the Old

With the passing of the torch on Feb 4, 2014, Satya Nadella made it abundantly clear that MSFT was headed for change. But the most notable of these changes is something of an unusual white flag.

Adamant to leave the past in the past, Nadella has been forging new alliances with former competitors like salesforce.com, inc (NYSE:CRM) and Oracle Corporation (NYSE:ORCL).

The partnership with CRM may have come at the expense of MSFT and a few of their key employees, but it also has allowed MSFT to incorporate CRM software into Microsoft Office, as well as procuring the Salesforce1 mobile app for its Windows Phones. Since the software is designed to both manage and improve a company’s data and relationships, it appears as if MSFT is just one out of a handful of companies that will benefit from this collaboration.

What with CRM and Microsoft in cahoots, the hookup between MSFT and ORCL had already bubbled to the surface, further shaping Nadella’s vision. The partnership has allowed customers to run Oracle software on Windows Azure, granting them an enhanced cloud-computing experience.

Pairing two of the largest software behemoths in the business has boded well for Microsoft stock. On Jan 26, Microsoft revealed a Q2 earnings report that boasted outstanding growth in its commercial cloud division.

Reconciling never looked so good, what with MSFT reporting six consecutive quarters of triple-digit revenue growth. Thanks to the improved Microsoft Office 365, Windows Azure, and CRM Online, commercial cloud revenue witnessed a more-than-doubling to the top line, securing an annual revenue run rate of $5.5 billion! But with Windows’ revenue on the decline (13%), Microsoft needs the cloud to help pick up the slack.

In With the New

These days, Microsoft is putting all its efforts into transforming itself into a company that consumers can depend on for all their personal computing needs.

One of those transformations has led to MSFT shedding its good ol’ Internet Explorer brand. This alone may not have a direct impact on Microsoft stock, but investors should take this as a positive sign that Microsoft is aware of its outdated software and are committed to providing more user-friendly products in a time where speed and functionality are crucial to our everyday needs.

Twenty years ago, IE was all the rage in the computing world. But much like MSFT itself, Internet Explorer had become stuffy and outdated as the years progressed and the world was introduced to the wildly popular Firefox, Google Inc‘s (NASDAQ:GOOGL) Chrome, and Apple Inc.‘s (NASDAQ:AAPL) Safari browsers.

Shortly put: It’s time.

The codename of Microsoft’s new browser: Project Spartan, and it’s supposed to feature a sleek new design, the Cortana personal assistant, and a speedier browsing experience. The only downside is that you’ll have to wait until the summer release of Windows 10 to see Project Spartan in action.

Say Hello to Windows 10

That brings us to the impending release of Microsoft’s newest operating system, Windows 10. Many were disgruntled with the quirky layout of Windows 8, and apparently MSFT so badly wanted to distance itself from the OS, it skipped a number.

Beta users in the Windows Insider program have been diligently running Windows 10 on their personal computers. What we know so far is that the new OS has brought the dearly missed start menu back, along with a wealth of exciting new features that may just make people excited about Windows again, not just tolerant of it.

Keeping in line with consumer satisfaction, Microsoft is rolling out previews of Office 2016 and Skype for business to their corporate customers sometime in April. Though the reveal of Windows 10 is at the forefront of MSFT news, these expanding beta releases are a sure sign that Microsoft is ready to begin their new chapter alongside their customers to provide the ultimate user experience.

As of this writing, Anna Rider did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/03/msft-microsoft-stock-windows-office/.

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