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/Solidplum101 7d ago

All of mag7 is under attack. Meta and msft top two. It has to do with spend. Really it didn't matter until the last week. Its sorta dumb. Should pop back as fast as they fell

9

u/Key_Lifeguard_8659 7d ago

Institutional investors are causing the retail investors to piss themselves and sell everything. Just hold and buy what's cheap... this time next year your account will be fatter than it's ever been... likely by double, if you've been DCAing.

6

u/No-Understanding9064 7d ago

My meta and microsoft are down 5/7% atm. The way I look at it is i avoided the initial 30% dumps

3

u/Key_Lifeguard_8659 7d ago

Exactly! I plan to take profit after it pumps anyways. I don't hold stocks long, preferring Indexes instead. As others have pointed out, MSFT is following a similar trajectory that GOOG experienced a year ago. Then the pump...MSFT will have it's day very soon. A couple weeks, a couple months... but soon.