Microsoft’s (MSFT) stock is on an upswing after a year of tough growth and a string of acquisitions.
The company is now on track to hit a record $9.6bn in revenue for the year, which is its highest since 2010, according to the firm’s latest financial results.
It also made a profit of $1.8bn, making it the largest company in the world by market value.
But it still faces many challenges, as it struggles to cope with the growth of the digital world.
The stock has seen a steady increase in share price since Microsoft announced its acquisition of Nokia, and it’s now up over 6 per cent in the last year, according.
The firm is hoping the deal will boost its revenue and the value of its patents, and could give it more cash flow.
Nokia’s acquisition, announced last month, is seen as the biggest investment in the mobile sector in recent years, and Microsoft hopes the deal is a way to improve its business, according the Wall Street Journal.
But Nokia’s market cap is still just over $800bn.
Microsoft has already spent around $5bn on acquisitions, and is also planning to invest more in new products, including the Xbox and Surface line of mobile devices.
In the year to date, Microsoft has paid $6.5bn in cash, and $1bn in stock in dividends.
Its share price is up almost 40 per cent from its IPO in May 2013.
But while the company is in the top three for revenue, the firm is struggling to grow its share price in the same period.
That’s because the company needs to raise more money for acquisitions and to buy back its shares.
Microsoft shares closed at $917.95 in Tokyo on Thursday.