Will Microsoft Ever Come Cheap With A Market Cap Of $3.06 Trillion?

  • We had been wrong indeed, with MSFT rallying by +16.3% since November 2023 and the gap widening by +34.8% to our previous recommended entry point.
  • The company reports excellent FQ2’24 earnings, with robust growth across all segments, particularly aided by the PC recovery and the growing partnership with OpenAI.
  • The expanding user base, increased cross selling, and productivity gains through the use of AI have also directly contributed to MSFT’s richer profit margins, negating the temporarily impacted balance sheet.
  • It is apparent that MSFT is an Alpha that one may chase at every dips, since the CEO’s brilliance and the company’s highly profitable growth may never come cheap after all.
  • If anything, the Market Capitalization continues to race upwards, with it already nearly doubling to $3.06T since the November 2022 bottom of $1.6T.

We previously covered Microsoft Corporation (NASDAQ:NASDAQ:MSFT) in November 2023, discussing the Intelligent Cloud’s expanding top/ bottom lines and backlog, attributed to the robust demand for OpenAI-enabled SaaS offerings across legacy and startup companies.

Combined with