Tomahawk, WI 8/09/2013 (Basicsmedia) – Microsoft Corporation (NASDAQ:MSFT) might be one of the few companies which have a worldwide appeal and are known every where. This hasn’t prevented a number of investors from asking questions regarding its viability as an investment option in this day and age. MSFT has been at the forefront in terms of coming up with technology which the world has a great need for, and can’t do without. This is the challenge facing MSFT, that is, to ensure that it doesn’t lose its place as a market leader and to make itself attractive to its hoards of investors, both new and current ones.

Has MSFT Reached Its Maturity? Can It Grow Beyond Its Maturity?

When a company is well established and enjoys the patronage of loyal customers, it can be referred to as having reached its maturity stage. Such a company is one which has successfully gone through the period of rapid growth, and now appears to grow at the same rate with the economy. Apparently, this is where MSFT has reached at the present moment. Such companies don’t exist in isolation since they have to contend with competitors who are just as mature and well established as them. MSFT has to contend with the likes of Apple and many more.

MSFT is not faced with a situation where they must reinvest all of its revenues back into the company. This means it can continue paying out dividends without much ado, and probably doesn’t have to do much to reward its investors, like other companies. But it is not exempt from facing or having to contend with a few challenges which would probably stretch it. MSFT still needs to position or maintain its current position as a market leader. This is the only way it can continue being seen as attractive by investors. It has to come up with innovative and fresh ideas.


MSFT financial results for Q1 2013.

Image is courtesy of

MSFT is Good Investment in 2013

Before delving into the figures of 2013, as shown in the diagram above, it is good to point out that the latest financial results are not to be taken in isolation. MSFT seems to be on solid ground and under the stewardship of stable management, and this is what enabled it to post $73.7 billion in revenue in 2012. In 2012, MSFT was still able to post close to $31.6 billion in cash flow for its operations, in addition to rewarding its investors with more than $10 billion in dividends and as buybacks. It wasn’t severely affected by poor performance of PC sales like Dell and HP.

The profitability of MSFT appears to hinge on its ability to diversify the products it is producing. The company has now reached a stage where it is a major player in the manufacture and distribution of gaming systems, smartphones and tablets. MSFT has still been able to see a growth in its revenue by as much as 8%, and this is quite impressive bearing in mind that things haven’t been quiet good in the PC world. I would definitely say that this is a company which has remained attractive to investors in 2013, and will continue being so in the foreseeable future.

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