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NASDAQ:MSFT

Microsoft Corp (MSFT)

379.05
-0.35 (0.09%)
as of Jun 18, 2026, 11:59:42 pm Market Open.
854 watching
0
BUY

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.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Jan 12/23, Up 9%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with MSFT is progressing well.  To remain disciplined, we recommend trailing up the stop to $230 at this time.

HOLD
Will AI be accretive to MSFT?

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.

BUY

Alphabet was a recent trade, and he just sold it, because this week's Microsoft Bing AI announcement was a game-changer. Because Google owns 97% of internet search and online ads, you don't need to move the needle much on Microsoft to make it a more competitive pricing environment. He was never a big fan of Google anyway and he got it luckily before it hit bottom. He prefers MSFT.

BUY

Excellent company with strong long term prospects.
Massive cash flow generating potential.
Second behind Amazon in cloud business.
Will be a good long term hold. 
Strong management team as well.

HOLD
Trimmed his position earlier this month because the CEO warned of sales weakness. They just reported: EPS beat and adjusted operating income also beat. Did excellent expense controls. Cloud computing also beat. Shares initially jumped but plunged after the CEO's conference call when he delivered weak guidance: revenue to shrink in cloud (4-5%) and personal computing (Office software). MSFT just bought an AI business. But usage of Windows remains big (time users spend on PCs), underlying usage remains strong. Xbox services revenues were down, but the number of users hit a record. Today, they bounced off today's lows and mostly recovered--that's encouraging. The lesson: don't jump the gun and sell. MSFT's long-term prospects remain strong, though he isn't rushing to buy more.
PAST TOP PICK
(A Top Pick Jan 18/22, Down 21%) Held up well most of last year, then caved. Higher interest rates headwind to valuation. Subscription model. LinkedIn has worked out well. Cloud business growing. Operating margin over 40%, very strong balance sheet. Could still grow earnings, though more slowly, despite recession. Core holding.
HOLD
All tech has sold off. Success often overshoots and shares are returning to a fundamental level. The business remains solid and their cloud business is still growing. Will more companies enter the cloud business and will an economic slowdown effect business. The dividend is safe. If Q2 and Q3 are weak, definitely look at this. He isn't adding shares now.
WAIT
CDR option to hedge currency risk? Basing around $220, now up to $239, a bit of a rally. Generally, he's pretty underweight tech. Doing great things with subscription model, cloud business. Problem is it's not cheap, 8x price to sales, wouldn't add now. Likes it long term. CDR is a hedge against the currency. More importantly, you get estate planning benefits for wealthier investors by avoiding potential US estate issues down the road. CDRs are considered Canadian content, as they're issued by Canadian banks.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate MSFT as a TOP PICK. The iconic software and cloud service provider is trading under 25x earnings compared the five year average of 35x - making this a good valuation to enter at. Recently reported earnings support a healthy 42% ROE. While other companies are raising debt, this company is paying down debt, buying back shares and growing cash reserves. Its 365 service will be offering a low cost $1.99 per month service offering that should help subscriptions, much like NFLX did. Its dividend is backed by a payout ratio under 30% and has been growing for 19 consecutive years. We continue to recommend placing a a stop-loss at $215, looking to achieve $293 -- upside potential over 21% Yield 1.15% (Analysts’ price target is $293.28)
HOLD
Great company, but worried enterprise software sales are slowing. Growth in cloud computing business slowing. Unsure on the short term performance of stock. Long term, confident stock will perform.
BUY
The worst stock today because of a downgrade from buy to neutral due to slowing Azure growth If you have a strong conviction in this name, then he feels better that we're lowering expectations for the stock and its cloud business (MSFT's most important segment). This is good. Still likes MSFT--it's the most diversified megatech stock and the best in this space.
WEAK BUY
She owns it, but is underweight. Its forward 22x PE is higher than peers, like Meta. Inevitably, this will give up more PE, but will settle down. Great company, great balance sheet.
DON'T BUY
Not cheap at 24x PE, but the company is entering a mature phase. In 10 years, we will look at high-growth megatechs as industrials or utilities. Given this maturity, we need to re-rate this group.
HOLD
The worst stock today because of a downgrade from buy to neutral due to slowing Azure growth He's owns only a little of it. Megatech will enjoy some good days this year, but tech will not be a theme. MSFT will do fine overall. But it's pricey at 24x.
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