Microsoft: SaaS Concerns Overstated, Robust Cloud Expansion and Valuation Appeal
Microsoft Corporation (MSFT) is the least performing of the Magnificent 7 stocks this year, primarily due to fears of AI disruption affecting software margins. However, the company's diversified business, solid financials, and strong balance sheet offer resilience. Despite these concerns, MSFT reported 15% revenue growth and 18% EPS growth last quarter, with Azure growing by 40%.
By David Rubenstein