Microsoft: A Tech Giant Positioned For Growth And Innovation


  • In this article, I will attempt to unpack concerns about Microsoft around its recent Activision Blizzard deal, ChatGPT, etc. I think these investments are here to last.
  • The deceleration in Azure’s growth appears temporary, and it is expected that once the PC market rebounds to pre-pandemic levels, Azure’s growth may strengthen.
  • I anticipate Azure to become the central hub for Microsoft in the future. I also think the company is a solid investment opportunity with the potential for significant growth.

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Entrance of Microsoft headquarters building in Issy les Moulineaux near Paris, France

Jean-Luc Ichard


Price Return MSFT vs SP500 (Seeking Alpha)

Bar graph

Revenue of video game industry (Statista)

Monitor and phone

Acquisition of Activision Blizzard faces rough investigation (Engadget)



pie chart

Microsoft revenue by division (FY 2022) (Microsoft 10K)


Income statement (Author’s estimates)


Balance sheet (Author’s estimates)


Cashflow statement (Author’s estimates)


Valuation (Author’s calculations)


Sensitivity analysis (Author’s calculations)


WACC (Author’s calculations)


Comps (Author)


PC Market (Garner)

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. I have no business relationship with any company whose stock is mentioned in this article.

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