Microsoft: Magnificent, Fairly Valued

Summary:

  • Microsoft’s Q1 results and long-term history both speak to its unflinching growth potential in every aspect of tech.
  • Strong gross margins and a lean balance sheet make it less risky than what is average for the S&P 500.
  • MSFT’s high growth is projected not merely from generative AI but other paradigm shifts that may yet materialize going forward.
  • This is supported by its flexible approach to internal reinvestment and M&A in good times and bad.
  • The one potential issue is the price one pays, and current valuations suggest that a Hold is a better rating.

Microsoft logo

jewhyte

Microsoft (NASDAQ:MSFT) is, to me, is the most magnificent of the Magnificent 7. It may not stand as much at the forefront of investors’ minds as the others. While all check the “tech” box, each has its own niche. Amazon (


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