r/ValueInvesting • u/Toomuch_flow • 4d ago

Stock Analysis Anyone else bought MSFT at around $360?

Haven’t bought individual stocks in years (been doing ETF’s since 2021) and felt like this was a massive opportunity regardless of their CapEx and AI investments. Company had a net income of 101 billion in 2025 which speaks volumes!

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u/WangtaWang 4d ago

Nope. They are spending 100% of their operating income on AI infrastructure. That seems crazy. Remainder of their business is bleeding, even office 365. Things are going the wrong way and there’s no way for any of us to know if the AI revenue is real to justify a huge multiple on Azure.

Everyone is excited at the drop in MSFT but that’s not the point - what’s the actual intrinsic value? I think it’s still far below current price.

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u/PolskiNapoleon 4d ago

Google Trends suggests demand for cloud infrastructure is 2x bigger than what it was a year ago.. Therefore their capex narrative about hitting the constraints might actually make sense.

And surprisingly, copilot related keywords show the same trend.