Should you invest in Microsoft after announcing strategic investment in Truveta?

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On Wednesday, Microsoft Corporation (NASDAQ:MSFT) shares edged slightly higher after announcing a strategic partnership investment in healthcare data centre startup Truveta.

The startup is the first health provider-led startup owned and governed by 17 health providers in the U.S.

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It will initially represent 15% of all clinical care in the US and billions of data points, becoming the world’s largest de-identified health data platform. Microsoft’s involvement gives Truveta the platform it needs to quickly scale globally, allowing more health providers to join.

In return, Microsoft will be able to revamp its offerings for healthcare customers, potentially making the unit a significant contributor to the technology giant’s revenue mix. Truveda has opted to implement Microsoft Azure as its exclusive cloud platform.

Time to bet on MSFT’s growth?

From an investment perspective, Microsoft shares trade at reasonable trailing and forward P/E ratios of 35.20 and 24.40, respectively, making the stock attractive to value investors. 

Moreover, analysts expect the office software provider’s earnings per share to grow by nearly 40% this year and at an average annual growth rate of 15.25% over the next five years. Therefore, growth investors could also find the stock an exciting opportunity.

As such, with shares down more than 6% over the last two weeks, it could be an opportunity to buy ahead of the exciting growth.

Source – TradingView

MSFT finds trendline support

Technically, Microsoft shares seem to have recently pulled back to trade closer to the 100-day moving average in the intraday chart. However, the trendline support prevented the stock from declining further, triggering a rebound.

Therefore investors could target rebound profits at approximately $293.95 or higher at $305.50. On the other hand, if the stock price falls further into oversold conditions, it could find support at $274.93 or lower at $262.69.

It could be time to buy MSFT

In summary, Microsoft shares have pulled back significantly, creating an attractive opportunity to buy. Moreover, the stock still trades at reasonable valuation multiples coupled with an exciting growth outlook.

Therefore, with the technology giant taking a strategic position to boost its healthcare offerings, it could be time to buy MSFT shares.

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