What Will Microsoft Do In The Coming Year?

Microsoft has been the second best performing stock in the Dow Industrials this year, rising 50% and only being beaten by Apple’s over 70% increase. Now that the year is winding down to an end investors are looking ahead to 2020, and the prospects for Microsoft are looking good for several reasons.

First among them is Microsoft’s recent win in picking up the U.S. Defense Department “JEDI” contract for cloud computing that could be worth as much as $10 billion over the coming decade.

Next is the way Microsoft is handling the gaming console war. It may have lost to Sony’s Playstation this year, but next year will see a new product cycle, and Microsoft is getting a jump on the 2020 holiday season by offering an upgrade to the newest Project Scarlett console for those who buy an Xbox One or Xbox One X this year.

Another positive scenario that will continue playing out is anti-trust. Microsoft was hit hard by this is the 1990s, and lawmakers have been taking a close look at the tech sector for monopolistic behavior again. The good news for Microsoft is they don’t appear to be on the radar, meaning they could benefit from the misfortunes of peers.

These are just the top stories that could drive Microsoft stock price higher in the coming year. External factors that could help the stock include a resolution to the trade war between the U.S. and China or additional defense contracts now that Microsoft has an “in” at the Defense Department. Yes, 2020 is looking up.