Microsoft Corporation (MSFT) is considered the best beginner stock due to strong earnings and growth

From Yahoo Finance: 2025-04-06 16:42:00

The US stock market faced a volatile first quarter in 2025 with negative returns due to tariff concerns and tech stock performance. DeepSeek, a Chinese AI software, caused shockwaves globally, leading to massive sell-offs. US policies countered its impact with tariffs on Chinese tech firms, while interest rate uncertainty added to market volatility.

President Trump’s announcement of global tariffs on Europe and China triggered retaliatory tariffs. China imposed a 34% tariff on US goods after the US announced a 54% tariff on Chinese products. This led to the biggest market drop since COVID-19, raising concerns about global supply chain disruptions.

The US economy is heading into continuous stagflation, with high inflation, low growth, and unemployment. Investors are advised to seek stocks with steady revenue, dividend growth, low cyclicality, and strong cash flows in sectors like energy, real estate, healthcare, finance, and tech.

Microsoft Corporation (NASDAQ:MSFT) reported strong Q2 2025 earnings, with revenue of $69.63 billion, up 12.27%. The AI segment contributed $13 billion to revenue, while cloud services revenue reached $40.9 billion, up 21%. Despite geopolitical and market challenges, Microsoft’s Chairman and CEO, Satya Nadella, highlighted strong growth in cloud services.

Microsoft (MSFT) ranks first among best beginner stocks, offering resilience against economic headwinds and tariff concerns. The company continues to expand globally, with plans to launch a cloud region in Malaysia. While MSFT shows promise, AI stocks are seen as having higher return potential within a shorter timeframe. Check out the report for a promising, low-cost AI stock.



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