• Microsoft (MSFT) stock is slumping and this is a buying opportunity.
• MSFT stock is trading at a six-month low and has massive upside from here.
• Strong fundamentals and past performance history make Microsoft a good addition to long-term portfolios.

Big tech company Microsoft (NASDAQ:MSFT) has been slipping more than anticipated. The macroeconomic issues across the market leave out no one, and Microsoft is no exception. MSFT stock has dipped nearly 21% this year as investors try to stay away from high-growth stocks.

Microsoft continues to dip, and while I don’t think the stock has bottomed out, I do think it is a low-risk tech giant that’s ideal for long-term investors. MSFT stock is suffering more than it should, but the dip has made it more attractive to investors. 

The Drop in MSFT Stock Is Temporary

Microsoft’s recent drop comes after two solid years of gains. The company has had its best years since the start of 2020 and in 2021, MSFT stock gained more than 55%.

I cannot predict when it will hit the same highs again, but the stock is a solid candidate with long-term growth potential. It is well-positioned in the industry and can weather the economic disruptions. 

The biggest advantage is its diversified business model, which includes cloud services like Azure, its Microsoft Office suite and a gaming segment. It ensures that a drop in revenue in one area does not affect the overall business of the company.

While the cloud remains a major driving force of revenue, it has already established its strength and standards in gaming and Office products.  As we move further toward cloud computing, Microsoft will expand and we will see bigger gains. 

Stellar Fundamentals

The recent earnings report shows Microsoft is in solid growth mode despite recession fears and macroeconomic concerns. It has successfully managed to move through supply chain issues and report impressive revenue numbers.

The company managed to beat expectations in the top and bottom lines and reported revenue of $49.4 billion. Revenue from cloud services saw the highest growth. The number of Azure deals valued at more than $100 million has more than doubled in the quarter.

The company announced the acquisition of video-game publisher Activision Blizzard for $68.7 billion, which is also the largest transaction by the company in its history. Once cleared, this deal could give stiff competition to other players in the industry. 

There could be bumps this quarter, but Microsoft has the strength to bounce back. 

The Bottom Line on MSFT Stock

There are solid reasons to buy Microsoft stock: it is trading at a discount and the company has an impressive record. The fundamentals are stellar and the potential of the cloud is massive.

MSFT stock might continue to fall in the near term, but could rally in the long run. It is trading near its lowest price from the past six months, and this could be your opportunity to buy the dip. 

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.