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Opinions Joe Terranova
Microsoft CorpMSFTBUYApr 26, 2023
Joe TerranovaStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Premium contentMicrosoft Corporation is an American multinational technology corporation headquartered in Redmond, Washington. Microsofts best-known software products are the Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Social media mentions are up 143% in the past 24h.
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.
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.
Stan WongPremium contentMicrosoft Corporation is an American multinational technology corporation headquartered in Redmond, Washington. Microsofts best-known software products are the Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Social media mentions are up 160% in the past 24h.
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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Premium contentMicrosoft Corporation is an American multinational technology corporation headquartered in Redmond, Washington. Microsofts best-known software products are the Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Social media mentions are up 267% in the past 24h.
IBM lacks the spread of clientele like MSFT. Also, IBM has been getting rid of their hardware business, focusing more on software with AI. In terms of quality, MSFT is better (customer loyalty, Office Suite) while IBM is inferior, offering little growth. IBM isn't a big player moving forward. Among megatech, MSFT is the top.
Strong momentum in generative AI. There's faith in Azure cloud re-accelerating. At the end of 2022, MSFT didn't suffer from weakening fundamentals, but rather was a victim of tax-loss selling for the megacaps. The report reiterated a strong fundamental company that's focused on the cloud. Shares remain 15% below its 15% all-time high from Nov. 2021, and entering 2023 saw under-allocations not seen for 12 years. Since then, investors have been rebuilding their positions as growth returns in vogue and yields fall off.