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Opinions Christine Poole
Microsoft CorpMSFTTOP PICKOct 21, 2024
Christine PooleStock price when the opinion was issued
As of Oct 08, 2026. Market Open.
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Wonderful operator. Likes it, but sold recently as it came close to his team's estimate of FMV. But that selling is not a reflection on the CEO or on the actual business. Its products are ubiquitous. Generates a lot of free cash. Doing all the right things.
The revenue growth from Microsoft's Azure's cloud computing platform is incredible. Microsoft CoPilot is getting better. People use Microsoft for many things such as email, writing memos, doing presentations and it is tied into institutional businesses. It is integrating AI into a lot of their businesses. Buy 69 Hold 3 Sell 0
(Analysts’ price target is $570.05)
Paul Harris, CFAIt already bounced around its lows in the summer. The question is bigger-picture. It's the 800-pound gorilla. Enormous amounts of cash. Backing AI to the hilt, so they won't be left behind.
If you like technology, and the United States at all, just own MSFT. It's the core stock that will participate in whatever the next big thing is. They missed the internet, and they're not going to do that again.
Likes it. It's been volatile. He has no idea if it's going to pull back, but his firm's timeframes are multi-year. Hit by the SaaSpocalypse along with the rest. Not as cheap as it was, but not as expensive as a couple of years ago. Still a long-term compounder.
About a 5% position for them, among 40 stocks, so above the average weight of 2.5%.
Martin Cobb, ASIPAMZN is well-positioned because of its partnership with Anthropic. In third place is MSFT, which really hasn't come up with a differentiated strategy. With the selloff in hardware any of those three is at an attractive entry point, with GOOG definitely first, followed by the other two.
She owns no hyperscalers at the moment.
A lot of the concerns were overstated. Software malaise has sort of passed, but you'll have to look at it company by company. Some real concern about its involvement with OpenAI, but it posted some very impressive sequential growth numbers yesterday. The horse race is in early stages, so don't draw any conclusions too quickly.
Cloud services doing very well, Azure growing YOY ~40% clip. Still trades at only ~25x PE. He'd put new $$ in today. (If he owns any stock, he'd be a buyer of that stock.)
Gordon Reid
He's at maximum weight today. Both divisions, software + Azure, are successful and growing fast. Software just has to be "good enough", and Fortune 500 companies climb aboard. Doing a decent job to win the future AI game. No problem starting a new position today.
Dan Rohinton
Thinks this name, as well as a lot of the big tech names (perhaps with the exception of GOOG), will go sideways for the next several years. Highs of $500-550 are what we'll get. He loved it in the last 6 months. Now he's out. Thinks you'll get a chance to buy again at $400 or below.
Likes it at 20-25x PE, but not at 30-35x. It's that simple. Too expensive for what it's likely to deliver.
At the bottom of the Mag 7 on price appreciation, up only 11% this year. Stock's done nothing since last reporting in July. Growth of cloud computing was at low end of expectations, and guidance was also slightly lower. No one likes a company that trades at 30x PE to miss consensus expectations. Company sees growth picking up in back half of next year. Capital spending increased 25% this year as they build out data centres for AI; slated to increase again next year. Being put in penalty box until they can show profitable growth.
(Analysts’ price target is $500.24)A core tech name. Recurring revenue. If growth doesn't materialize, the market will demand that it cut back. It just means they'll have more cashflow from its high operating margins. Strong balance sheet. Good entry point. Yield is 0.8%.