Investors should be aware of the widespread tech outage involving CrowdStrike (NASDAQ:CRWD) and Microsoft (NASDAQ:MSFT). Many are discussing the aftermath of this unfortunate event. Microsoft is a technology giant and AI trailblazer, so we confidently assign it a “B” grade.
Just remember, you won’t get opportunities to invest in Microsoft unless there’s something bad going on. The Microsoft share price is significantly below its 52-week high of $468.35, but is the company actually in danger of collapsing? Not at all, as Microsoft continues to make waves in multiple technology segments while raking in substantial revenue.
Microsoft’s Potentially World-Altering Projects
First of all, from a financial standpoint, there’s nothing to worry about. Microsoft’s fourth-quarter fiscal 2024 revenue grew 15% year over year to a whopping $64.7 billion. The company’s cloud-computing business revenue, all by itself, rose 19% to $28.5 billion.
Just as importantly, Microsoft isn’t just resting on its laurels. The company continues to innovate in unexpected areas. For example, Microsoft and digital pathology developer Paige recently unveiled an updated version of Virchow, an AI model to help diagnose cancers.
Meanwhile, Microsoft just inked a five-year agreement with Pivot Energy to develop 500 megawatts’ worth of solar projects across the U.S. This team-up is, according to GlobalData, Microsoft’s “first substantial foray into distributed generation portfolios.”
You probably didn’t think of Microsoft as a medical-technology or solar-project pioneer. Yet, Microsoft has the vast resources and the vision needed to test out new, fascinating and potentially profitable concepts in the real world.
Stop Obsessing About the ‘Blue Screen of Death’
There’s no point in rehashing the news story about the failed CrowdStrike software update right now. Heaven knows, it has received more than enough coverage in the financial press.
Suffice it to say that the outage caused some Microsoft computers to crash and display the infamous “blue screen of death.” This news item is now at least three weeks old. It’s one of the reasons Microsoft stock pulled back from its aforementioned 52-week high.
A while ago, CrowdStrike assured that 97% of the affected devices were back up and running. However, some press outlets want to milk this story for all it’s worth. They still want to talk about the damage done and the “blue screen of death.”
By now, Microsoft computers aren’t generally still crashing. Sure, there will be financial ripple effects for Microsoft, but the market already priced this into the shares. The point is that you can exercise your common sense instead of letting the media’s doom-and-gloom purveyors distract you.
Microsoft Stock: Think Independently for Best Results
The best approach is to use the financial media for your benefit. Glean the information you need, and come to your own conclusions.
Ask yourself: Is Microsoft really on the brink of collapse because of the tech outage? Is the “blue screen of death” a permanent problem for Microsoft, or just a great attention-getter for news stories?
Along with all of that, consider how Microsoft is well-capitalized and able to delve into fascinating fields, such as medical technology and even the solar industry. In the final analysis, Microsoft stock earns a “B” grade, and investors can choose to buy and hold shares without worrying too much.
On the date of publication, Louis Navellier had long positions in MSFT and CRWD. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.
