David Garrity Microsoft Corp MSFT-Q DON'T BUY Jun 02, 2008

Hitting all-time record highs, with more upside. Still holds. His biggest exposure to technology.

Historically trades at 25x PE, but is now 37x, not cheap.

Is doing incredibly well, being the software and cloud services and gaming plays. Also, it has embraced AI strongly such as savings in call centres while increasing customer satisfaction.

He trimmed a bit yesterday. 12-month price target of $514, so it's pretty close. He had a 7.5-8% weighting and brought it down. You can also write some short-dated (1 week, perhaps 2) calls. Doesn't see any catalyst until earnings come out.

Giant cashflow generator. Great dividend grower, though dividend's not big. Making new highs. Winner in cloud, lots of opportunity with Copilot. Great business platforms generate fees. He does have a significant underweight in tech, only about 7%. Expensive, but proved it can execute. Large-cap growth is one of the strongest areas of the market.

Likes dominance in its categories.

It reports Wednesday. Wait until the CEO speak before making a move either way.

They just reported a blowout quarter with Azure cloud growth expanding from 35-39% in just one quarter. He's shocked. Is spending big on AI and it's paying off.