You can own Microsoft at 23x earnings and short Costco at 50x earnings

u/Brave-Side-8945 · Reddit — r/stocks · February 06, 2026 at 15:31 · ⬆ 981 pts · 💬 339 comments  | View on Reddit ↗
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Original Reddit post

Author argues Microsoft is cheap at 23x earnings versus Costco at 50x, drawing a parallel to Alphabet's earlier undervaluation.

MSFT — LONG The author argues Microsoft at 23x earnings is a no-brainer buy, comparing it to Alphabet when it traded cheaply while investors dismissed it as 'behind' with looming lawsuits. The mechanism is multiple re-rating: Wall Street underestimates the durability of Microsoft's Office, cybersecurity, and operating system moats, wrongly assuming each company can vibe-code its own Office suite. No explicit catalyst or time horizon is given; the main stated risk is the market's misjudgment of software competitive dynamics.

Buying Microsoft is at this point a no-brainer. GOOG was this cheap while MSFT was in the high 30s.

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u/Brave-Side-8945 Reddit r/stocks
Microsoft cheap at 23x, moat underestimated
The author argues Microsoft at 23x earnings is a no-brainer buy, comparing it to Alphabet when it traded cheaply while investors dismissed it as 'behind' with looming lawsuits. The mechanism is multiple re-rating: Wall Street underestimates the durability of Microsoft's Office, cybersecurity, and operating system moats, wrongly assuming each company can vibe-code its own Office suite. No explicit catalyst or time horizon is given; the main stated risk is the market's misjudgment of software competitive dynamics.
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This Reddit post, published February 06, 2026, features u/Brave-Side-8945 discussing MSFT. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/Brave-Side-8945  · Tickers: MSFT