10 Best Big Data Stocks To Buy Now

07. Microsoft Corporation (NASDAQ:MSFT)

Average Analyst Share Price Target Upside: 18.22%

Average Analyst Share Price Target: $494.72

At number seven on our list of ten best big data stocks to buy now stands Microsoft Corporation (NASDAQ:MSFT). Analysts have set an average share price target of $494.72 for Microsoft Corporation (NASDAQ: MSFT), reflecting an anticipated upside of 18.22%. On August 16, BMO Capital Markets has upheld its Outperform rating for Microsoft Corporation (NASDAQ:MSFT) with an unchanged price target of $500. The firm attributes its positive stance to Microsoft Corporation (NASDAQ:MSFT) strong position in artificial intelligence and its extensive range of products. Although the June quarter showed mixed results and the guidance for Azure is conservative, BMO is optimistic that Azure’s growth will accelerate by late FY25 as the company overcomes current capacity challenges. The firm also emphasized Microsoft Corporation (NASDAQ:MSFT) careful capital expenditure management, anticipating that this prudent strategy will be maintained in FY25.

Microsoft Corporation (NASDAQ:MSFT) currently offers a forward dividend yield of 0.72%, with an annual payout of $3.00 per share. The company’s payout ratio stands at 25.40%, indicating a healthy balance between dividend payments and earnings. Over the past five years, Microsoft Corporation (NASDAQ:MSFT) dividend has grown at an average rate of 10.27% annually, and it has consistently increased its dividend for 19 consecutive years. The most recent dividend, announced at $0.75 per share, has an ex-dividend date of August 15, with a payout date set for September 12.

Polen Focus Growth Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q2 2024 investor letter:

“The top absolute contributors were Alphabet, Microsoft Corporation (NASDAQ:MSFT), and Amazon. Microsoft was another top absolute contributor in the quarter, speaking to a growing appreciation for all the ways the company has an opportunity to monetize GenAI, be it in its Office suite or Azure cloud business. In the latter case, it contributed 7% to Azure’s revenue growth in the most recent quarter. We believe Microsoft remains a highly advantaged business with many secular tailwinds driving durable growth for the foreseeable future, even at its immense scale.”