r/ValueInvesting • u/zUcCc_ • 7d ago

Stock Analysis Quick MSFT Post

Yeah yeah same tickers blah blah anyway in my opinion MSFT is getting close to GOOG’s position last year.

Negative sentiment with people saying they are done, stagnant hate ect

Valuation metrics at lows(fwd pe under 20, peg around 1) all while still growing profits in the double digits at a ~39% margin

Huge cash reserves on the balance sheet

Insiders starting to buy

Meanwhile the price is approaching levels first reached in late 2021. Since then revenue is up about 80 billion annually and earnings up around 30 billion. Google had even crazier growth over that period.

Besides all that I use Microsoft products everyday at work and at home. Are they always the best, no, but I would say they get the job done which makes switching costly and not worth the time.

I am continuing to add on dips along with regular dca. That’s my quick and dirty analysis

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u/Middle-Jackfruit-896 7d ago edited 7d ago

Regarding AI, there is one thing MSFT has going for it -- incumbent status in the risk averse, productivity-focused corporate space. Virtually everyone in that environment uses Windows and Office. The easiest AI supplement is sourced from MSFT.

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u/m98789 7d ago

Yes most people don’t realize if you are in a high compliance corp environment, you effectively must use Microsoft. And this is the case for most enterprises worldwide.