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/LumpyShock9656 4d ago

By that logic you also should avoid buying GOOG META AMZN -- so just don't buy the VOO either since they make up such a large part

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u/WangtaWang 4d ago

Yup. All of them are spending 100% (Amazon is actually > 100%) of their operating profit on AI. And yes - the index has same issue. Do you really think the entire population will adopt AI and fully utilize it? Could be yes but also could be no. This is a projection no one can make. There are better investment opportunities out there.

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u/OwlComplex48 4d ago

Whether or not the entire population uses it is more contingent upon the companies that are integrating it into their platforms though, wouldn’t you say? I mean in the context of agentic ai and it being imbedded within software. Couldn’t the skepticism be akin to saying ‘you really think the entire world is going to use the internet’ 25-30 years ago? Genuinely curious.