What You Need To Know
Last week, Microsoft’s market capitalisation hits $2 trillion for the first time in the history after it announced its major Windows update.
The new Windows, Windows 11 will be adding features to encourage developers to put theirs apps in the Microsoft Store. For the very first time, it is adding support for both Android apps on its laptops and PCs. It incentivises developers by offering them 100% revenues from app sales as compared to the 30% fees charged by Apple and Google.
What does this mean?
It is always heartening to know that the platforms are actively helping the developers to grow their business by offering them low or no fees. This could be the win-win situation for all parties. Microsoft users will get more relevant and more intuitive apps from the store while the developers will retain a higher revenue. With over 1.3 billion users using Windows 10, this is expected to bring in more than $20 billion revenue for Microsoft.
Is it a buy?
Microsoft (NASDAQ:MSFT) is definitely a market leader in its ecosystem, it always makes sense to collect its shares for long term investing. However, investors also need to be mindful that it is currently trading at its all time high.