As we step into the new year, investors are eager to know whether Microsoft (MSFT) stock is a buy in January. With a market capitalization of over $2.5 trillion, Microsoft is a tech giant that has consistently delivered strong performance. Let's dive into the fundamentals and chart action to determine if MSFT is a buy now.



Fundamentals: Strong and Steady

Microsoft's fundamentals remain robust, with a solid balance sheet and strong cash flow. As of November 2024, Microsoft's stock price stands at $410.37, with a 52-week high of $468.35 and a 52-week low of $380.38. The company's revenue and earnings per share (EPS) have shown consistent growth, with a 15% increase in revenue and a 10% increase in EPS in the fourth quarter of fiscal year 2024 compared to the same quarter of the previous year.



Microsoft's cloud revenue, particularly from Azure and other cloud services, has been a significant driver of growth. In the fourth quarter of fiscal year 2024, revenue from Azure and other cloud services increased by 29%. Additionally, the gaming segment recorded a remarkable jump in revenue of 61% in the fourth quarter of fiscal year 2024, driven by the acquisition of Activision Blizzard King.



Chart Action: Upward Trend

Microsoft's stock chart action leading up to January 2025 has shown a consistent upward trend. The 50-day average stock price is $428.4084, and the 200-day average is $425.13974. The 1-year rating trend includes a majority of "Strong Buy" and "Buy" ratings from analysts, with a minimal number of "Hold" ratings.



Analyst Consensus: Strong Buy

The consensus among analysts regarding Microsoft's stock in January 2025 is a "Strong Buy" rating. The average target price for Microsoft stock from 30 stock analysts is $511.07, which predicts an increase of 20.38% from the current stock price of $424.56. This positive sentiment reflects analysts' confidence in Microsoft's strong fundamentals and growth prospects.



Conclusion: A Buy Now

Based on the fundamentals and chart action, Microsoft stock appears to be a buy now. The company's strong financial performance, growth in cloud and gaming segments, and positive analyst ratings all point to a bullish outlook for MSFT in January 2025. As always, investors should conduct thorough research and consider their risk tolerance before making any investment decisions. However, Microsoft's fundamentals and chart action suggest that the stock is well-positioned for growth in the new year.