Microsoft Stock: 3 Things That Smart Investors Should Know


  • MSFT’s guidance points to a modest 1% decline in headline operating margin for full-year fiscal 2023; its actual second quarter operating costs also came in below expectations.
  • Microsoft should be able to continue with its impressive track record of revenue growth in the years ahead; the commercial RPO metric is a key indicator of future topline expansion.
  • AI is a growing market, and MSFT is well-positioned to capture opportunities in this area thanks to its alliance with OpenAI and its cash flow generative legacy businesses.
  • My Buy rating for Microsoft remains intact, after analyzing a number of critical factors relating to the stock.
Entrance of Microsoft headquarters building in Issy les Moulineaux near Paris, France

Jean-Luc Ichard

Elevator Pitch

I continue to assign a Buy rating to Microsoft Corporation’s (NASDAQ:MSFT) stock.

In my previous article for Microsoft published on November 3, 2022, I analyzed the effects of the company’s layoffs. The focus of my latest update for MSFT is the

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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