Microsoft Corp (MSFT)

On the S&P, the best earners remain the Mag 7 like this. A lot of the dollars invested in tech ETFs goes into the Mag 7 names. This will continue to thrive for the rest of the year.

Spending is really strong for their wares; it's been a capacity issue.

They haven't caught every tech trend, falling behind internet search, but they are ahead in AI and likely the biggest investor in AI. If any company comes through unscathed, it's MSFT. It's stood the test of time. He'd add on a pullback.

He was always told never to make a time or price prediction. Growth stock, Azure has been great. In the right places. Trades at a multiple that far exceeds its growth potential. 

Don't look for earnings in 2025-2025. Look out to 2026, and you don't see the big double-digit gains that the market's paying for. It's a bit scary, but especially if you're looking to cash out and make money 2 years from  now.

Best distribution platform in the world for technology, leader in AI and in cloud. Leader in every part of software and a fully integrated technology stack that you want to be in. Own it in size and with a long-term horizon, and it will be a winner. He'd average into it.

Still in his top 5. He has about a 7% position, so he wouldn't be adding more today on the pullback. 12-month price target of $491. Strong financial performance, great innovation including AI, brand recognition. 

Reports next Tuesday. They're great, because if they miss, they telegraph it. They're not going to miss.

A secular grower that grows its dividend reliably.

Along with AMZN, AAPL and GOOG, one of the greatest businesses the world has ever seen. Generates so much cashflow, growing at impressive rates, even as it gets bigger. Law of large numbers just doesn't apply. Tailwinds from so many different areas.

Wildcard is AI, and a lot of stocks have moved up on the hype. Should benefit from AI. Not cheap valuation, but not egregiously expensive. He doesn't know how far any pullback would be, so perhaps start nibbling here.

Down today because the NASDAQ's down quite a bit. Likes it for the cloud and AI exposure. Shares have done well, and look good technically. 200-day MA is moving higher, as is the stock price. Lofty valuation at 35-36x forward earnings, 12.5x price to sales.

Holding it and being careful. When the tide turns on technology, he'll probably trim.

It has done well and is making record highs, so the stock could be split. It has done nine splits with the last one being 20 years ago. If it fell back to the $420's that could be considered quite normal but sell if it goes below $400.      Buy 65  Hold 5 Sell 0

20% is pretty big. He never likes to have anything over 10%. If you have capital gains, which you don't want to trigger, and you still like it, write some calls. Lots of horses in the AI race. Taking profit in these mega-caps is easy, but it's harder to find a candidate to buy.

Likes it very much but cautions over its 35x PE. Has a phenomenal growth profile, though, due to cloud business, software with an overlay of AI. MSFT boasts a lot of data, which is essential for AI.

They've done a great job over the decades. Likes it. His only complaint is that its valuation has run up and is extreme now. 

12-month price target of $469, so just a bit of runway left. Lots of horses in the race. Big deal these days is the Maia chip. If looking to get in buy in thirds around $425, $400, and $375.

World's largest market cap for a publicly traded company. 3 major lines of business - cloud computing, personal computing & productivity software. Defensive growth company with excellent exposure to tech trends going forward. A.I. tech is market leading. ~70% of revenues are recurring with mission critical services. Trading at ~31x earnings - not cheap - but solid offering of value and growth.