The Monthly Gems by Allan TongMicrosoft CorpMSFTTOP PICKApr 01, 2026

They reported total revenue growing 19% with total revenue growing 19%, and Azure growing 48%, beating the street. The AI tailwind keeps getting better.

He can't believe the market pushed this down to $400. The story then was that MSFT had too much tied to OpenAI, and that AI would disrupt their software business, Narratives change. MSFT is growing top and bottom line at a huge rate. He's own this since 2012. They will continue to see big earnings growth and deliver enormous free cash flow. Once the data centres are built, the hyperscalers will be the big winners.

Remember they reinvented itself for the cloud. It's a machine now. It fell earlier this year due to AI fears, but MSFT will benefit from AI.

They report next week. They boast 30 million paid Co-Pilot users. Azure's business will be up 40-45%, plus they are free cash-flow positive, unlike last quarter.

One of two tech stocks he'd own today. 

He wouldn't but today, but neither would he sell. So much of investing is buying at the right price, and then letting things work. Valuation's a bit rich. Look to add on a pullback. Well positioned on AI. Well diversified. Great balance sheet, lots of cashflow. Important that some of these companies can do massive capex, but not be FCF-negative.

Largest security company in the world, though obviously not a pure play. Look at this instead of CRWD.

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.

Copilot could steer MSFT higher. More users use it than ChatGPT now, and leads ChatGPT and Claude on trust. MSFT is already a trusted company among businesses. Shares have jumped 40% over 6 months. They have good governance.

It's starting to recoup its large data centre investment. He stuck with MSFT the whole way down earlier this, because he had fait in the CEO who understood the need for data centres from their customers and was willing to ride the dip.

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

It 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%.

AMZN 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 classic example of buying off a base in a trading range. The chart broke out recently then sold it at $460, making 15-20% in a month. He got out to avoid being greedy.