Microsoft Corp (MSFT)

You're buying this at a lower multiple as recently as January. If you think earnings will hold up as well as AI and data centre spending, this makes sense.

They have lots of cash and downside protection; their office products are monopolistic. Also, growth comes from gen AI and the cloud. Is a defensive play. Yes, they had a period of dead money, but the price is now attractive.

One of the Magnificent 3 he owns out of the Mag 7. Likes the secular opportunity in cloud computing via Azure, plus entrenched dominance in business and household applications. Stalwart grower, undemanding valuation.

He's selling a March covered call, $420 strike, and expiring March 21.

He has owned this for a long time. The issue is partly AI and worries about how it can use AI effectively. Also its $80 billion in capital expenditures. This can hurt margins and free cash flow but Capex is coming down. It is big on the institutional side and we should see the value of that next year.

One, a monster quarter, which he expects including a little lift in their Azure cloud business. MSFT is talking a lot about quantum computing, and a lot of people see them as the reserve for quantum (and be the Defense Dept.'s go-to for quantum, which he doesnt buy), but estimates in this area are low, which could be another catalyst.

Stock pulled back 6% on the January reporting, attractive entry point. Cloud computing grew 31% instead of the 32+% expected. She thinks 31% is still pretty decent. Spending on data centres increased quite a bit. Management believes growth will pick up in latter part of this year. 

Tends to invest in a company, such as LinkedIn, before it becomes mainstream. Early investment in AI as well, and well positioned to ride that wave. Strong balance sheet, recurring revenue stream. Yield is 0.8%.

He's long owned this, a major position, and will ride through its peaks and valleys long term. A solid company, trading at a much-lower PE than Nvidia. They will benefit as AI gains more usage. Likes it. 

After the bell, they delivered a strong overall quarter. But investors looked closely at the constant-currency revenue growth of Azure, which slightly missed. Don't do anything until hearing the conference call first (happening now).

Must own company. Company has done a fantastic job. Very good management team. Ability to generate cash flow incredible. Could see a correction in the stock price - but is excellent company for the long term. 

A wild card. He's sold some of his shares lately. They're building a lot of data centres, but their AI PC failed (so far) and possibly there's fallout with OpenAI and possibly CoPilot will disappoint. If MSFT didn't have such a huge installed base, he would have sold all his shares.

He trimmed shares late last year and placed hedges in effect through March. The company got ahead of itself. The CEO in the last 2 conference calls pushed too hard AI, though they are a company can roll out AI enhancements to their Office 365 an cloud products. Also, they are vulnerable to European anti-trust moves. He himself won't buy it now, but you can buy it for the long term. He's up 60% on it over the last 2 years, so he's being prudent. It has burned off a lot of excess and sees it falling below $400 in a sloppy market. It will be capped at $450.

Now trading at 200-day MA and oversold, with RSI around 41-42. Likes it here. Long term the chart doesn't get much better, with higher highs and higher lows. Valuation a bit pricey at 3x PEG ratio, 32x forward PE, and 15-16% growth. At forefront of AI space.

Misunderstood company - best source of value is distribution (not new tech). Ability to scale new technologies unprecedented. Ability to manage capital and manage business very strong. Excellent margins and strong cash flows. CEO is essential to company success, but company has reached "escape velocity", so not concerned about management ability (can be replaced). 

They're spending at least $80 billion of capex in AI to keep up with peers, but this has been overhang on the stock. Shares are up only 13% this year, lagging Mag 7 peers. It's early--we don't know what's going on with their AI, but MSFT's suite of services have always been aimed at operational efficiency. We'll see how their AI plays out in coming quarters.