Microsoft: Setting My Eyes On $900 Share Price (Rating Upgrade)

Summary:

  • Microsoft Corporation has underperformed the broader market by 12% since my last coverage, but a recent pullback makes it more attractive.
  • Microsoft has showcased a strong 2024 performance, supported by the OpenAI partnership and Azure growth.
  • Azure’s 29% YoY growth and expanding AI customer base position it as a key future growth driver, despite the business’s higher CAPEX expected in FY25.
  • Management expects double-digit top and bottom-line growth in FY25, supported by a boom in enterprise spending.
  • The current stock pullback offers a long-term buying opportunity. I see $900/share by mid-2030 as the target price.
Microsoft Deutschland GmbH in Munich

FinkAvenue

It’s been more than half a year since I wrote my last coverage of Microsoft Corporation (NASDAQ:MSFT), labeled “Not Worth your Money At Today’s Price.” Microsoft’s stock traded at close to 40x its Blended P/E valuation back then, prompting me


Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT, GOOG, AMZN 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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