MSFT A Titan Like No Other | MSFT With 1.6 Trillion Market Cap

MSFT A Titan Like No Other

Microsoft Corp. engages in the development and support of software, services, devices, and solutions. It operates through the following business segments: Productivity and Business Processes; Intelligent Cloud; and More Personal Computing. The Productivity and Business Processes segment comprises products and services in the portfolio of productivity, communication, and information services of the company spanning a variety of devices and platform. The Intelligent Cloud segment refers to the public, private, and hybrid serve products and cloud services of the company which can power modern business.

The More Personal Computing segment encompasses products and services geared towards the interests of end users, developers, and IT professionals across all devices. The firm also offers operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games; personal computers, tablets; gaming and entertainment consoles; other intelligent devices; and related accessories. MSFT was founded by Paul Gardner Allen and William Henry Gates III in 1975 and is headquartered in Redmond, Washington.

A Solid Company With Geographical Reach

Based in Redmond, Washington, Microsoft’s sales are split between the US, which accounts for about 50% of revenue, and other countries, which provide the balance of sales.

Internationally, MSFT operates research and development centers in China and India; data centers in Ireland, Singapore, and the Netherlands; and operations and facilities in Ireland, and the UK. The company also has offices in India, China, Canada, Australia, Germany, Japan, and the UK.

Sales & Marketing

Microsoft sells through multiple channels to a wide range of customers as well as conducting sales online and through OEMs, distributors, and resellers, as well as retailers.

Maintaining its brand identity and keeping itself in front-of-mind for potential consumer and commercial buyers is a key strategy to ongoing sales. Customers include consumers, small and medium organizations, large global enterprises, public-sector institutions, internet service providers, application developers, and OEMs.

MSFT spent $18.2 billion, $17.5 billion, and $15.5 billion on sales and marketing for the years 2019, 2018, and 2017, respectively.

Sound Financial Performance

In fiscal year 2020, MSFT generated 143 billion U.S. dollars in revenue, a record year in terms of revenue for the company. Microsoft’s revenue totaled $125.8 billion in 2019 (ended June), up about $15.5 billion from 2018. The Intelligent Cloud segment’s revenue rose 21% year-over-year, driven by server products and cloud services. Growth in Office and LinkedIn products fueled an increase in Productivity and Business Processes sales, while stronger contributions from Surface, Gaming, and Windows boosted revenue in the Personal Computing segment.

Net income jumped to$44.3billion in 2020, $39.2 billion in 2019, $22.6 billion more than 2018, due to higher revenue and a tax bill that was about $15.4 million less year-over-year.

 

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Tim Rolle
Investor of 6 years and Managing Editor of Money Midnight, a news outlet focused on highly profitable investment ideas and bold underground research.
Articles: 117

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