MSFT: A Mildly Interesting Dip

Right now, Microsoft (MSFT 1.92%) is… well, let’s just say it’s available. At a price. A price that, if you squint and consider the sheer, improbable vastness of the universe, is rather… agreeable. It’s been a few years since anyone could say that without sounding desperately optimistic, and the last time Microsoft’s stock was this… un-premium, it performed with the sort of enthusiasm one usually reserves for finding a perfectly ripe avocado. I suspect a repeat performance is not entirely out of the question. Here’s why. (Though why anyone needs another reason in a universe brimming with unanswered questions is, frankly, a mystery.)

Microsoft’s Stock Rarely Gets This… Manageable

MSFT”>

Loading widget...

This strategy has, rather unexpectedly, paid off. Azure is currently Microsoft’s fastest-growing segment, with revenue increasing by a respectable 39% year over year during its last quarterly report. Overall, Microsoft is doing rather well, with revenue rising by 17% as a company. Normally, this would result in a valuation that approaches the price of a small moon. But not this time.

Microsoft’s stock has fallen from grace and now resides at levels rarely seen this decade. I prefer to value Microsoft’s stock using its operating price-to-earnings ratio, because it conveniently ignores one-time expenses and investment gains from its OpenAI investment. (It’s a bit like pretending that the giant inflatable dinosaur in your living room isn’t there. It simplifies things.) From this perspective, Microsoft’s stock is… reasonably priced. (A term that should be approached with extreme caution.)

At the beginning of 2023, when it was at a similar price, it presented a clear buying opportunity. Microsoft’s stock gained over 50% that year, and a similar outcome is not entirely implausible this year, provided the market decides to be… agreeable. Because nothing has fundamentally changed with Microsoft’s core investment thesis, I’m reasonably confident that today’s price is a gift for investors. Anyone looking for a top AI stock to acquire should, logically, look no further. (Though, of course, there’s always the possibility of discovering a previously unknown species of sentient space slug that offers superior investment opportunities.)

Microsoft will undoubtedly play a central role in the deployment of AI worldwide, and there are no signs of that changing. This should provide investors with a sufficient degree of confidence to consider acquiring the stock now. (Or, alternatively, they could spend the day contemplating the inherent absurdity of existence. It’s a perfectly valid option.)

Read More

2026-03-21 20:32