Really likes the good secular growth of the cloud business. Stock will probably fall from here. Gross margins, free cash, and balance sheet continue to be strong. Hardware segment has slowed due to supply chains. ATVI is a great purchase. Pick your spots to buy. Higher a year from now.
It has had a great run. It has good recurring revenue and doesn't rely on advertising. Its earnings multiples are in mid 20's but price replies on growth so not sure of future price. Multiples are shrinking.
At $264, it trades at 23x 2023's earnings, which we haven't seen in 3-4 years. Their trajectory is fine and their valuation now is the most compelling in a long, long time.
Allan Tong’s Discover PicksMSFT stock trades at 30.4x earnings, consistent with its 29.8x a year ago. In a time of volatility, MSFT stock remains steady in this regard. Microsoft remains a darling of Wall Street with 21 buys, one hold and a $363.781 price target, which is roughly 33% higher than current levels. Unfortunately, the name is gotten swept up in the massive tech stock sell-off, which drowned markets on April 29. Consider those pullbacks buying opportunities. Read Are mega tech stocks still alive? for our full analysis.
Owns Amazon and Apple in tech instead. MSFT has been a great company for many years and the current CEO is wonderful who has transformed the company. His big issue is their high PE. Highly successful, though.
Their cloud business is growing at 46%. Videogames is their weak division down around 9%, but every other division is firing on all cylinders. Shares jumped 5% today.
With the VIX at 28, find something to buy, then take profits at 19. The Fed is engaging in "demand destruction" to cool off demand and core inflation, which he hopes when we see data next week. Stocks have gotten ahead of this. Most stocks really peaked in February 2021. If Apple and Microsoft can't hold up when they report next week, forget it, we'll be in a bear market. Even if they do, these stocks may still not rally. Beware. Look at Blackstone's report and downward share response, for example. Keep an eye on Apple and MSFT.
Stockchase Research Editor: Michael O'Reilly After sitting on the sidelines a while, it is once again time to recommend MSFT as a TOP PICK. As the world's largest software company, it has developed an amazing recurring revenue model that incorporates enterprise cloud services that grew by 50% in 2021. It trades at a discount to peers at 30x earnings and is supporting an impressive ROE of 45%. It is a cash flow king, adding to cash reserves while aggressively buying back shares and retiring debt. It's dividend is supported by a payout ratio under 30% of cash flow. We recommend a stop-loss at $240, looking to achieve $370 -- upside potential of 30%. Yield 0.89% (Analysts’ price target is $269.58)
Has owned this for a long time. It has many horses in the race--cloud services which acts like an annuity, which they cross-sell into his its software, and their intelligent cloud segment including Github. They're absorbing their Activision Blizzard purchase which will make them #3 in videogames in the world by revenue--another horse. You can buy it here. He targets $365. Definitely buy now or lower to $250. (Analysts’ price target is $371.18)
Pulled back about 15%. Attractive long term. Cloud is doing very well, with anticipated accelerating growth. Growth will moderate, but continued recurring revenue stream model. LinkedIn is the go-to for jobs. Activision will broaden participation in gaming. Strong cash position to fund growth in R&D. Yield is 0.87%. (Analysts’ price target is $372.51)
Is the market overbought? Yes, in the megacap tech names, but not the rest of the market which is correcting, namely consumer discretionary names like William Sonoma and Restoration Hardware, which posted weak outlooks and are selling off. Exceptions among the megatechs are Apple and Microsoft. MSFT's Azure clouD computing must be killing it now, which will take them to new highs by the end of this year.
Nice correction. His model price is considerably lower at $181.80. He expects a market bounce into early summer. He'd buy here, and sell in mid-summer or late fall.
Owns quite a bit. Price increases with inflation shouldn't hold the buyers back. One of few global cloud platforms that allow small and mid-sized software companies to develop software, display it into the cloud and provide it to clients globally. This is a base of recurring revenue. The media and our emotions are making too much of rising interest rates and their relation to tech. Tech can improve even with rising rates.
Good long term business with strong ability to return capital.
Stock is over valued (P/E ~30). Should be low to mid 20s.
Wait for market pullback to add to position.
Well run company with lots of free cash flow and strong balance sheet.
Microsoft Corp is a American stock, trading under the symbol MSFT (previously MSFT-Q on Stockchase) on the NASDAQ (MSFT). It is usually referred to as NASDAQ:MSFT or MSFT