Microsoft Corporation (NASDAQ: MSFT) down more than 20% for the year is an opportunity to buy a quality name on sale, says Gina Sanchez. She’s the CEO of Chantico Global.
Microsoft is a key cloud computing name
Sanchez likes MSFT as it sits at the heart of cloud computing – a global industry that’s expected to more than double to a trillion dollar by 2026. On CNBC’s “The Exchange”, she further said:
[Microsoft Corporation] is a stock that had a pretty high valuation but even despite that valuation, it has a solid balance sheet and that balance sheet will look really good as we continue to see rates rising.
Sanchez remains bullish on the tech titan even after it cited “exchange rate” and lowered its outlook for the current fiscal quarter in early June.
Microsoft continues to pay a dividend
Other than cloud, Microsoft is aggressively expanding its footprint in the fast-growing gaming industry. Last month, it revealed plans of bringing Xbox Game Pass to Samsung Smart TVs. Sanchez added:
Microsoft is a very enduring play. It’s a stock that’s now flipped into a value stock. We think that there is huge growth that just is no longer priced. So, we love Microsoft Corporation, we’re going to keep holding it.
She’s also constructive on the American multinational since it continues to pay a dividend. Wall Street, on average, sees a more than 35% upside in MSFT from here.
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