Microsoft announced their 2nd Quarter 2016 Results today after the market closed, the press release is here.
Microsoft has been a core holding in my US Long Term Growth segment, and today's better than expected earnings is a demonstration of why. I was hesitating about holding on to Microsoft while Ballmer was in charge, but once they put Nadella in charge, I knew the company was going to focus on areas that would be nothing but growth potential. Since then, it's been a positive ride, with growing dividends along the way.
Cloud computing was the future of business computing when a lot of initial decisions about where to focus ecosystems were taking place. I think Microsoft made some mistakes and was taking the wrong approach when they tried to follow Apple's closed ecosystem approach, and Nadella gave the company the right focus and purpose to swing things around. It's no accident that since Nadella took over 2 years ago, Microsoft stock is up 37%. I'm up slightly more at 39.42% in that same time period due to good timing, but I think this is one of those situations where I picked the right horse.
I don't think I'll see it up another 37% in 2 years, but I'm holding in for the dividend growth potential at this stage.