Current headlines are bearish, from rising interest rates to a potential global conflict following Russia’s invasion of Ukraine. However, dour headlines often pop up, but longer-term trends underway point to a better, not worse, future.
That’s especially true with tech. The past decade has seen an explosion in digital transformation, and that trend looks likely to continue, even with the latest headlines today.
No matter how those trends play out, however, they’ll need infrastructure to support them. The biggest piece of infrastructure right now is with cloud services. From storing and hosting data to keeping it secure, it’s a large trend still in its early phases.
A few companies have become dominant in providing cloud storage services. With market fears going on right now, one player poised to continue growing and see a rebound in shares over time is Microsoft (MSFT).
The company has quietly become one of the top players in the space, while also increasing its exposure to areas such as social media, the Metaverse, and video games which may allow it to continue to be a big winner in the years ahead.
Action to take: Investors may like shares under $300. That’s well off the all-time high of $350 per share, and gets a starting yield of 0.8 percent. The company can likely grow its earnings and revenue at 20 percent or more as it’s been doing for years to come.
Shares also make for a good rebound play in today’s markets. The August $350 calls, last going for about $4.35, could deliver mid-to-high double-digit returns on a rebound in shares in the coming months.
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.