This Magnificent Seven Tech Is Now Down 3% For The Year; Is Microsoft Stock A Buy In February?

As we step into February, investors are taking a closer look at their portfolios, assessing which stocks have performed well and which ones may be poised for a turnaround. One tech giant that has caught the eye of many is Microsoft (MSFT), which has been a mainstay in the market for decades. But with the stock down 3% for the year, is it still a buy in February? Let's dive into the data and analyze the company's recent performance to help you make an informed decision.



Microsoft's Recent Performance

Microsoft's fiscal year 2024, which ended on June 30, 2024, was a strong one for the company. Revenue increased by 16% compared to the previous year, driven by growth in each of its segments. The company's operating income also increased by 24%, reflecting the strength of its core businesses (Microsoft, 2024).

In the fourth quarter of fiscal year 2024, Microsoft's revenue grew by 15% compared to the same period in the previous year. The company's cloud computing platform, Azure, was a significant driver of this growth, with revenue increasing by 29% (Microsoft, July 30, 2024).



Analyst Ratings and Price Targets

As of January 17, 2025, the average analyst rating for Microsoft stock is "Strong Buy," with a consensus price target of $510.93. This represents a 24.69% increase from the current stock price of $409.75 (Benzinga, 2025). The highest price target is $600, while the lowest is $425, indicating a wide range of expectations for the stock's future performance.



Microsoft's Long-Term Prospects

Looking ahead, Microsoft's long-term prospects appear strong. The company's cloud computing platform, Azure, is expected to continue growing, driven by increasing demand for cloud services. Additionally, Microsoft's product offerings, such as Microsoft 365 and Windows, remain popular among consumers and businesses alike.

Is Microsoft Stock A Buy In February?

Given Microsoft's strong performance in recent years, positive analyst ratings, and promising long-term prospects, the stock may be an attractive buy in February. However, investors should also consider the broader market trends and the potential impact of geopolitical risks on the company's operations.

In conclusion, Microsoft's stock may be a buy in February, given its strong recent performance, positive analyst ratings, and promising long-term prospects. However, investors should also consider broader market trends and geopolitical risks when making their investment decisions. As always, it's essential to do your own research and consult with a financial advisor before making any investment decisions.