Microsoft Corp (MSFT)

They made a splash when they announced AI, so they now must take market share from Google. AI will be highly competitive between them, though both companies could prosper. MSFT remains a core tech holding. Operating margins are over 40%. Maybe not chase it now, but pause and wait for a pullback.

 We think investors can look at metrics such as Forward P/E, as it factors in the near-term growth prospect into the valuation, which is currently around 28.6x.
In the last five years, MSFT has been trading at as low as 22x to 34x Forward P/E. We think the current valuation is fair.
Additionally, MSFT is an interesting case, because prior to 2017, the multiple on average is around 12x to 18x. 
The trading multiple has gone up significantly mainly because there was a significant change in the company’s fundamentals (change in CEO), which turns the story from a legacy software company to a high-growth tech company again. 
Overall, we think MSFT’s outlook is solid.
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Undervalued. Two years ago, their cloud business did $60 billion in revenue, and $87 billion projected for 2023. Their PC business went from $54B to $59B last year, $53B projected this year, but compare that to today's 37% decline in PC sales overall. Business software grew from $54B last year to $68B this year (projected). He applauds MSFT's total embrace of AI with at least $10B of investment. Don't look at the market cap which has risen only $1.9 trillion to $2.1T. Rather MSFT has been taking cloud market share from Amazon.

Not a cheap stock, but consistent--you want to own it. It will hit a new high. He's very bullish big tech (with an AI kicker) as the economy slows down.

Owns shares in company but is not buying technology at this time.
Valuation is high given current share price.
Will buy more when share prices fall.
Expecting further growth in the business.
Good long term investment for next 5-10 years.
Excellent business with good long term prospects. 

Still in his top 5. Trimmed a bit to about a 3.5% weighting, as he had a 12-month price target of $290. He's holding on, as we're going into earnings season and things will change. Lots of interesting horses in the race. Thinks ATVI purchase will go through. Decent earnings. Buy in thirds here at $280, 265, and 250.

It has fallen with the tech sector but not as much and is now at a good price. It has been an early investor in AI and signs are that this is helping the BING search engine and search engines are one of the most profitable areas in the tech sector due to advertising. BING should gain market share in this field. Microsoft has been using franchises in Office and Windows to fuel investments in the Cloud and is one of the top two players in this field. It is integrating open AI right across the tech desk. He is looking for double digit revenue growth in the next three years along with buying back of shares and increasing the dividend.      Buy 51, Hold 5  Sell 1

Leader in software sector.
Well positioned company at the forefront of change.
Open A.I. and cloud computing the future of business.
Currently beating competitors in A.I. revolution.
Expecting share price to hit $350.
Expecting video game acquisition to close.
 

Peaked at quite a high multiple, now coming down in steps. Again, when the earnings trend and the valuation trend diverge, they tend to close in the "jaws of death". Terrific company. ChatGPT sounds interesting. We're in a valuation rediscovery. Be cautious. Needs to drop 20-30% more before he'd be interested.

Likes it, but you can still buy it cheaper. He's watching and waiting.

Public perception is that the internet revolution passed it by, which is not the case. Has a huge cloud business, growing at exponential rates, which alone will continue to drive earnings. Penetration in the cloud is only at 20%. Possibility that it could be back front and centre of people connecting, and returns for the next 5-20 years could be significant.

Too early to tell if the AI search engine will be accretive. But shares have risen above the 200-day moving average, but is expensive at 9x forward sales (tech is 5.5x). MSFT is one of the few tech stocks he owns. A leader in cloud. Careful adding to this and tech as a whole.