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Opinions Kim Bolton
Microsoft CorpMSFTHOLDOct 23, 2024
Kim BoltonStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Premium contentIn the last quarter, the company reported 4.27 USD per share, beating the 4.06 USD estimate by 5.18%. Revenue for the same period reached 82.89 B USD, despite the estimate of 81.44 B USD. For the next quarter, analysts expect 4.24 USD in earnings per share and 87.61 B USD in revenue. Social media mentions are up 109% in the past 24h.
His preference is MSFT, and he'd buy today. Valuation is ~20x PE -- very fair valuation for business with good outlook for earnings growth for next 3-5 years. A bit more value than AMZN right now. Business model supports a better compounding over the long run, and generates significantly more FCF. Late to the AI race, and that's the reason for the selloff.
No issues with AMZN. Very well run, targeting new markets. You can't own all the tech companies, so you have to pick your spots.
Chris BlumasHurt by worries of software and of cloud growth slowing. Copilot AI project not loved. Tied itself to OpenAI, which seems to be losing a bit of steam to Gemini and Anthropic. Trading at only 22x forward PE. Better value today than in quite a while.
John Zechner
There are legitimate concerns of the AI product being lesser than others, as well as the software component. Its collaboration with Open AI has caused it to fall behind others in the race. However it recently re-negotiated a deal with Open AI to explore other avenues which should open things up for Microsoft. The Azure cloud offering is growing at 40% plus, and its software offerings eg Windows, etc. are a perfect launching pad for an AI application. It is 30 % off its highs. Buy 68 Hold 3 Sell 1
(Analysts’ price target is $561.39)
Gordon Reid
Good runway to price target. A hardware and software company, but put in penalty box because of software. Well positioned for enterprise, consumer, and even government services. In his top 5 holdings.
(Analysts’ price target is $560.00)Kim BoltonTech companies like this got too expensive and got ahead of themselves. MSFT is still growing in double digits. AI won't go away, so the companies that invested will benefit for many years. MSFT is depressed now because it's not as an exciting story as Micron or Nvidia. The PE of 22x is attractive. Software isn't going anywhere.
Views it as a utility. Great company, wonderful platform, not just software. Innovative. Lofty 24x PE now, but potential of 12x PE for 2030 if estimates hold. Great moat, wonderful balance sheet, high operating/gross margins. Yield is 0.88%.
(Analysts’ price target is $561.39)
Premium contentWith recent earnings showing growth in cash reserves as debt was aggressively retired and shares bought back, we reiterate MSFT as a TOP PICK. Its subscription based business helps stabilize cash flow as its AI and cloud based systems continue to show excellent development opportunities. It trades at 27x earnings and supports a ROE over 30% and the dividend has been growing by over 10% per annum. We continue to recommend a stop at $360, looking to achieve $531 -- upside potential of 24%. Yield 0.8%
(Analysts’ price target is $554.28)
He has no software exposure (13% tech across the firm, a significant underweight). Have to pick your spots. Agentic AI puts software companies in a tricky position. Investing heavily in AI infrastructure, so less $$ to return to shareholders. Trading better than only 30% of S&P stocks in last 52 weeks.
On the other hand, sees semiconductors in a similar vein to copper and a call on the economy, and where pricing power gives inflation protection.
The dilemma that professional money managers go through every day! If you sell a small portion of a winner, you win whether the stock goes up or down. If you sell 15% of your stake, and it continues to go up, you still have a lot. But if it goes down, you can pat yourself on the back for being so smart (and now you can buy it back).
One of his top 5. His 12-month price target is $491, so still about 20% upside. Has been dead money over the last couple of months, as the rest of the market's taken off. So many horses in the race, from software to hardware to cloud to cross-selling. Its Maia AI chip is very competitive. If it got north of $450, that's where he'd take 10-15% off.