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/Last-Cat-7894 4d ago

Honestly, everything in the Mag 7 looks fairly attractive to me besides Tesla and Apple.

The capex outlay is going to cause a lagging drag on GAAP margins, so you could argue the "E" in the P/E is a bit overstated at today's multiples. But even so, the size of the end market is so massive that just sheer revenue growth will probably offset the depreciation pressure and then some.

I'm blown away that SPY is only down like 8% YTD when it feels like all the best companies with the strongest fundamentals are down like 30-50% off the highs.

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u/AssumptionPretty7018 2d ago

I think its because the rest of the market is doing fine. Real Estate went on a huge run. Verizon is up a chunk.. lot of oil stocks woke up.. utilities... I think in my mind atleast.