Stock price when the opinion was issued
Likes the stickiness to both personal and corporate clients -- once you get into the network, it's very hard to get out. Cloud business has improved significantly. If quantum computing ever comes to the forefront, MSFT is there.
ROIC is 23% vs. WACC of 9%. This gives them lots of cashflow to pour money into the next greatest thing. R&D development is important, given how fast things are changing these days. Yield is 0.72%.
One of his top-performing stocks. He targets $514. Very well-run company. Boasts solid moats in enterprise software and operating systems, which ensures recurring revenue and customer retention. Azure Cloud remains second only to AWS. The valuation may be elevated, but MSFT is good now for selling some calls given volatility. Keep the calls pretty sure, writing calls around $490-495.
By far, the world's biggest software company. Scale advantage, defensive growth. Great exposure to long-term secular info-tech themes: digital transformation, cloud computing, business intelligence, AI, security. 70% of revenues are recurring. Mission-critical products. Strong incumbency advantage, big competitive moat.
(Analysts’ price target is $500.27)Sustainable EPS growth rate. Valuation is reasonable in view of growth prospects. Yield is 0.8%.