Added to YB: 2026-02-24
Pitch date: 2026-02-20
MSFT [neutral]
Microsoft Corporation
-2.67%
current return
Author Info
No bio for this author
Company Info
Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The Productivity and Business Processes segment offers Microsoft 365 commercial, enterprise mobility + security, windows commercial, power BI, exchange, sharepoint, Microsoft teams, security and compliance, and copilot; Microsoft 365 commercial products, such as Windows commercial on-premises and office licensed services; Microsoft 365 consumer products and cloud services, including Microsoft 365 consumer subscriptions, office licensed on-premises, and other consumer services; LinkedIn; dynamics products and cloud services, such as dynamics 365, cloud-based applications, and on-premises ERP and CRM applications.
Market Cap
$2.9T
Pitch Price
$395.00
Price Target
547.00 (+42%)
Dividend
0.95%
EV/EBITDA
15.35
P/E
24.06
EV/Sales
9.46
Sector
Software
Category
growth
Microsoft Stock Breakdown: Attractive Opportunity or Lost Decade?
MSFT (overview): Down -23% despite +16% rev, +20% op profit growth. Market fears AI bet on OpenAI wrong as Claude/Gemini gain. 45% cloud backlog tied to OpenAI, Copilot only 3% paid penetration. Azure +39% but capex soaring to ~$150B (from $83B), swallowing FCF. Trades 34x normalized FCF. Transforming from end-user tools to AI agent infrastructure. DeepSeek risk & datacenter overbuild could pressure pricing. Upside 14-36% if double-digit growth continues 3+ yrs.
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