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Investor Insights

This summary was created by AI, based on 66 opinions in the last 12 months.

Microsoft Corp (MSFT) is widely viewed as a strong defensive play, bolstered by its significant cash reserves and established positions in both office productivity and cloud computing markets. Many experts herald its cloud services, particularly Azure, as a key growth driver, alongside its innovation efforts in artificial intelligence (AI), although there are concerns about how effectively the company can capitalize on AI technology. Several analysts note the potential catalysts for growth, including improving performance metrics and a likely uptick in demand for cloud solutions. Despite experiencing periods of stagnation, the consensus leans towards MSFT as a must-own company thanks to its robust business model and generous free cash flow, although some caution against current valuations that appear high relative to projected growth. The company is seen as well-positioned to navigate through market fluctuations, but its stock price may be capped at certain levels unless it outperforms expectations significantly.

Consensus
Buy
Valuation
Overvalued
BUY

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.

TOP PICK

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.

BUY

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.

TRADE

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

BUY

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.

BUY
What is the catalyst to break its stagnancy?

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.

TOP PICK

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%.

(Analysts’ price target is $506.15)
HOLD

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. 

WAIT

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).

BUY

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. 

PARTIAL SELL

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.

BUY

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.

BUY

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.

TOP PICK

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). 

WAIT

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.

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Microsoft Corp(MSFT-Q) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 8

Neutral - Hold Signals / Votes : 8

Bearish - Sell Signals / Votes : 8

Total Signals / Votes : 24

Stockchase rating for Microsoft Corp is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Microsoft Corp(MSFT-Q) Frequently Asked Questions

What is Microsoft Corp stock symbol?

Microsoft Corp is a American stock, trading under the symbol MSFT-Q on the NASDAQ (MSFT). It is usually referred to as NASDAQ:MSFT or MSFT-Q

Is Microsoft Corp a buy or a sell?

In the last year, 24 stock analysts published opinions about MSFT-Q. 8 analysts recommended to BUY the stock. 8 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Microsoft Corp.

Is Microsoft Corp a good investment or a top pick?

Microsoft Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for Microsoft Corp.

Why is Microsoft Corp stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Microsoft Corp worth watching?

24 stock analysts on Stockchase covered Microsoft Corp In the last year. It is a trending stock that is worth watching.

What is Microsoft Corp stock price?

On 2025-03-14, Microsoft Corp (MSFT-Q) stock closed at a price of $388.56.