MSFT reported a net income of $101B in 2025. The stock was trading around $360. The author views this price as a "massive opportunity," implying the market is undervaluing the company's earnings power and future prospects from AI investments. Strong earnings justify the purchase price, making it a compelling value entry point. High capital expenditures (CapEx) on AI may not yield expected returns. General market downturn could pressure the stock further.
MSFT reported a net income of $101B in 2025. The stock was trading around $360. The author views this price as a "massive opportunity," implying the market is undervaluing the company's earnings power and future prospects from AI investments. Strong earnings justify the purchase price, making it a compelling value entry point. High capital expenditures (CapEx) on AI may not yield expected returns. General market downturn could pressure the stock further.