#1 - Microsoft (NASDAQ:MSFT)
Kicking off our list of tech stocks likely to flourish in 2022 is Microsoft (NASDAQ:MSFT). The company proved itself essential during the pandemic with its Teams productivity software that kept offices connected. The work-from-anywhere movement is also causing many companies to migrate their operations to the cloud. And Microsoft is only too happy to oblige with its Microsoft Azure business.
However, Microsoft isn’t limiting its opportunities for growth. In mid-January the company announced plans to acquire Activision Blizzard (NASDAQ:ATVI) in a $70 billion all-cash transaction. An immediate benefit of the merger would be that Activision’s mega-hit “Call of Duty” franchise would become exclusive to Microsoft’s Xbox platform.
Industry insiders give the deal a 60% chance of going through. The sheer size of the deal and possible regulatory hurdles are given as reasons the deal could fall through. That may be holding both stocks back at the moment.
But this is also a strategic opportunity for Microsoft to get its foot in the door of the emerging metaverse. With that likely being the case, you can bet that Microsoft won’t be deterred from looking for other targets if the deal falls through.
About Microsoft
Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.
Read More - Current Price
- $436.60
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 26 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $508.46 (16.5% Upside)
