After trading several months below the $35 mark, Microsoft stock has risen rather positively after the appointment of the new CEO, Satay Nadella. It has now being traded at $41 a share.
Which, many analysts believe, is a perfectly fair value.
Data published by Forbes indicates that this 20% boost in value in the past six months has resulted in a market capitalization increase to a rather impressive $342 billion. The existing market share is also considered to be in line with the stock price estimate.
But perhaps the most fascinating thing in all this is that Windows is no longer the company’s cash cow. Microsoft now generates the biggest amount of money via the Office productivity suite.
The Office division brought in some $24 billion in calendar year 2013, and analysts expect this to surge to at least $30 billion annually by the year 2020.
Windows is now Redmond’s third largest division, behind the server unit. And it accounted for 14% of the aforementioned stock value.
CEO Satya Nadella and Bill Gates, it appear, are well positioned to guide the company in the right direction, as the company continues to invest money in hardware and mobile — two avenues that Microsoft is yet to explore at its full potential.