MSFT price is unchanged since Jan 2024, while revenue and earnings have grown in the high teens annually. This creates a compressed valuation multiple; if growth continues, re-rating upward is likely as uncertainty fades. Buy MSFT on the thesis that fundamentals will eventually overcome short-term AI sentiment headwinds. OpenAI loses competitive edge to Anthropic; legal/trial outcomes hurt investment; broader software sector de-rating.
MSFT price is unchanged since Jan 2024, while revenue and earnings have grown in the high teens annually. This creates a compressed valuation multiple; if growth continues, re-rating upward is likely as uncertainty fades. Buy MSFT on the thesis that fundamentals will eventually overcome short-term AI sentiment headwinds. OpenAI loses competitive edge to Anthropic; legal/trial outcomes hurt investment; broader software sector de-rating.