It’s clear the market won’t hit new highs anytime soon. But before investors throw in the towel, it may be prudent to instead look at how great companies are acting today. Many are starting to invest with the future in mind.
Some of these investments may be relatively small, but over time, they could prove transformative to the companies making them today. They could even ensure big growth for companies that already lead in their respective industries.
Case in point? Microsoft (MSFT). The tech giant has a number of different businesses today. And now it’s working to integrate artificial intelligence (AI) with its investment in ChatGPT. That could even allow the company to make headwinds against search engine dominator Alphabet (GOOG).
While making these future investments, Microsoft has seen shares drop 28 percent in the past year, even as revenues have jumped by 10 percent. Plus, the company sports an above-average 34 percent profit margin.
Action to take: Investors should continue to accumulate shares under $250. At current prices, investors can also get a 1.2 percent dividend.
For traders, a long-term rally in the stock is likely. The July $280 calls, last going for about $4.75, offer mid-to-high double-digit returns in the months ahead on a move higher in shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.