The so-called “Magnificent Seven” – a rather theatrical designation, wouldn’t you agree? – have, of late, been exhibiting a distinct lack of magnificence. One would have thought, with all the fuss, they’d be consistently buoyant. Instead, we find ourselves observing a rather tiresome dip. The Roundhill Magnificent Seven ETF, a perfectly respectable vehicle for those who insist on following trends, is down 12% thus far. Last year’s exuberance – a 21% gain – feels a lifetime ago. It outperformed the S&P 500, naturally, but this year? A distinctly underwhelming performance.
And among these erstwhile giants, Microsoft (MSFT +0.66%) is proving particularly…uncooperative. Down 21% since the start of the year. Honestly, one almost feels sorry for the analysts. Almost. But before you rush to place your bets on impending doom, allow me to suggest a slightly more nuanced perspective. It’s a steal, darling. A positively charming little bargain.
A Slight Underestimation, Perhaps?
There’s been a great deal of chatter, of course, about Artificial Intelligence and its potential to reshape the landscape. Microsoft’s Copilot assistant has garnered attention, but let’s be frank: it hasn’t exactly set the world alight. Reports suggest a certain…disappointment amongst users. A touch of anticlimax, wouldn’t you say? Still, one mustn’t dismiss potential too hastily.
Despite the muted reception of Copilot, the company is growing. Revenue for the last quarter of 2025 rose a respectable 17%, reaching $81.3 billion. Mr. Nadella, a perfectly sensible chap, observes that they’re “only at the beginning phases of AI diffusion” and that Microsoft has already built an AI business larger than some of their established franchises. A rather bold statement, but not entirely without merit.
Segments like Microsoft Cloud, Microsoft 365 (consumer), and Azure are performing admirably, exhibiting year-over-year growth exceeding 20%. And those, my dear, are the areas poised to benefit most from future AI opportunities. One must always look for the silver lining, even when the clouds are gathering.
A Momentary Lapse, Perhaps?
A lukewarm reception for Copilot, coupled with a general downturn in the tech sector, has understandably affected Microsoft’s share price. But for those with a longer-term perspective – and one trusts you do have a longer-term perspective – this presents a rather opportune moment. A chance to acquire a solid asset at a discounted price. It’s almost too easy, really.
Currently, the stock trades at 24 times trailing earnings, and analysts predict a forward price-to-earnings multiple of just over 20. It’s not quite at its 52-week low of $344.79, but it’s a decidedly attractive proposition, particularly for those seeking a reliable investment for the long haul. One shouldn’t expect miracles, of course, but a steady, predictable return is always preferable to a dramatic, unpredictable plunge. Don’t you agree?
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2026-03-23 19:05