Microsoft and Marijuana

Many people, myself included, have lambasted Microsoft (MSFT) for buying LinkedIn (LNKD) for a 50% premium. I still think the deal was a terrible mistake as Microsoft grossly overpaid for LinkedIn. However, that doesn’t mean Microsoft is not a good investment anymore. Microsoft is a cash cow and still has large cash reserves. Despite the acquisition, I think Microsoft can continue moving in the long-term and here’s why.

Foray into Marijuana industry

Microsoft is uniting with Los Angeles based start-up, Kind, to create and promote seed to sale cloud software that can aid states and cities completely track and regulate the production of marijuana from the farms where it is grown to retailers.

Basically, 25 states are included presently that have chosen to legalize and regulate medical marijuana.
However, the company is keeping a considerable gap between itself and individual cannabis businesses, and is only focused on working with Kind’s government-solutions division. Public opinion of marijuana is progressively enhancing. Therefore, it the company can establish itself as a leading cloud player in the cannabis industry, it could have a new opportunity for growth in the imminent years.

SharePoint now available on mobile device

Microsoft recently publicized the release of its new mobile application for SharePoint customers. The company wants to bring SharePoint powered intranet portal and its content to user’s smartphones and tablets. The company has presently launched this app for iOS platform only, but also detailed that it will soon release it on Android as well as Windows platform.

Moreover, Microsoft also detailed that it was working on this app from the day it publicized its plans for the prospect of SharePoint. At present, SharePoint is used by around 200,000 organisations, and is also termed as intranet. However, the thing that was lacking was basically portability which means a modern, mobile-first tactic through which SharePoint content will be available to a business’s end users without worrying about device they use.

With the launch of this new SharePoint application, the company has made intranet easily accessible to users, as they can access people, company news and announcements, content, sites and many more via their smartphone. One of the most significant features is Search, as it permits users to locate resources by keyword and filter results by sites, files and content recommendations which are powered by Microsoft Graph, the company’s machine learning platform.


Despite Microsoft’s LinkedIn debacle, I am still bullish on the stock in the long-run. The company’s foray into the marijuana industry will likely be a winner in the long-term. The marijuana industry is a multi-billion dollar space and if it were to be legalized in the future for recreational use, it could be highly beneficial for Microsoft.
Published on Jul 1, 2016
By Prudent Investor

Copyrighted 2016. Content published with author's permission.

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