Microsoft Corp (MSFT)

He's unsure what to make of the mixed reception to the AI app, Co-pilot. But their cloud business remains hot. Co-pilot will become the AI gold standard.

Any position that rises 5%, he will trim as part of his portfolio management. MSFT has climbed 24% since Nov. 1. 

They just reported fantastic cloud numbers, gaming and AI. He owns a big position. But shares ran so far leading up this quarter. Look for a better entry point.

An excellent play, likely #2 in AI. Cheaper and safer than NVDA, but its PE is at 10-year highs. They pay a nice, small dividend. If corporate customers buy their new AI products, there will be a lot of earnings upside, but how much will customers buy?

Bit more runway. Price target of $427. So many horses in the race. Leader in AI revolution. Continually beat bottom and top, increase guidance.

Cup and handle started about 2 years ago, and away it's gone to the races. Making new highs, a really strong sign, likely to keep on. Diversified in data, cloud, and AI now. Not product-dependent. Buy today, 1/2 position if you're hesitant. Not as cyclical as AAPL. 

Likes it even it at current levels (all-time high).  Generative AI is a strong catalyst in the coming 1-3 years. They will charge $30 monthly to use their Copilot AI that 60% of companies plan to try or buy. If Copilot proves to be efficient, the revenues and upside are huge.

Not a value company, but has become a "utility" style company due large scale adoption of products. Very strong product suite with high margins. Excellent management team. 30x earnings per / share hard to justify, but strong dividend and excellent balance sheet. Would recommend holding, or buying on weakness. 

Strong across the board, especially in AI in which they bet early and aggressively. A champion.

Hit record high earlier today. Makes sense especially with exposure to AI space. Cloud business is growing, subscriptions keep the money flowing. Not cheap now at 33.5x, growing at 15x, 2x PEG. Forward price to sales a bit high at 11x. 

In all the right spaces and doing the right things. Hold. Be careful adding, as tech did so well last year.

He owns MSFT, it's more interesting, more levers for growth. Bit more EPS growth, a few percentage points higher. Blue chip also. Cloud is doing phenomenally. AI exposure.

AAPL is more a core, blue chip stock.

In 2024, they will continue to execute, but will it be the best-performing tech stock? No. It may even lag peers. That said, MST is his biggest position and will hold on.

MSFT is expected to grow in the mid-teens on the top-line over the next few years and trades at a forward P/E of 30.9. It trades at a premium, as it shoulld. With that said, we think the bar is high for above-average share price growth at MSFT. They are very large, being scrutinized on acquisitons, not cheap and have had a strong run in the last year. We think it is a name an investor can still do fine with over the long-term, but we might not expect 'fireworks' here either. 
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