Microsoft: A Golden Opportunity After A Recent Pullback

Summary:

  • Microsoft’s stock experienced a moderate sell-off despite strong Q4 earnings, but I think that there are no reasons to be less bullish than three months ago.
  • Revenue and EPS beat estimates in Q4, with strong operating leverage and FCF generation, positioning the Company well for future growth and acquisitions.
  • Valuation analysis suggests MSFT is undervalued by 21%, making it a compelling investment opportunity.

Microsoft Deutschland GmbH in Munich

FinkAvenue

Investment thesis

My previous bullish thesis about Microsoft (NASDAQ:MSFT) kept up well as the stock was ahead of the broader market before the Q2 earnings season started. However, the sell-off which started a few days ago diminished all previous


Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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