At what point are you trimming or selling all of your $MSFT?
u/YouHaveShitBreath ·
Reddit — r/ValueInvesting
· August 11, 2026 at 11:13
· ⬆ 17 pts
· 💬 139 comments
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AI Summary
Summary
Author is considering trimming or selling MSFT after buying below $400 and a sharp run-up, believing the current MSFT valuation gap vs GOOG is roughly fair.
He is inclined to reallocate any MSFT trimming into META, arguing META's reported PE is temporarily distorted by a tax-bill quarter and will compress after next earnings.
Quality assessment: Speculation / light valuation reasoning rather than deep DD; it is a tactical rotation idea based on valuation optics and earnings mechanics.
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Comments139
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I was thrilled to load up on Microsoft below $400, however, this isn't a circle-jerk post about patting each other on the back.
If I compare it to a company like Google, it seems to me, based on respective earnings and balance sheets, that MSFT and GOOG are about the correct kind of gap between them as of this point.
At what point are you selling, or did you sell Microsoft? At what point did you trim, or are you trimming Microsoft? I'm aware that for some of you the answer will be 'Never', as that's also not a bad strat' when it comes to stocks like Microsoft.
I feel like there may be some value in trimming or perhaps even selling around these levels, to allocate into other stocks.
For perspective, my other holdings are Amazon and Meta, which I do not believe to be worth considering trimming or selling yet. Any trimming I would likely reallocate to META due to a significant PE compression that will happen after they report next earnings. They still have the tax bill quarter compromising their PE ratio as of current, so their PE is basically on 3 Q's of earnings instead of 4 (next quarter will bump it back up to 4 Q's worth of earnings, as the tax-bill quarter drops off)
Author believes there is "some value" in trimming or selling MSFT around current levels after buying below $400. This creates an opportunity to rotate capital from MSFT into other positions with better perceived risk/reward. Not a short thesis, but a signal that forward upside may be more limited relative to alternatives. MSFT is a high-quality compounder; trimming early can sacrifice long-term gains if it keeps re-rating higher.
META's current PE is distorted by a tax-bill quarter, leaving trailing earnings based on roughly three normal quarters. Once that tax-hit quarter drops off after next earnings, trailing earnings normalize and the PE compresses mechanically. Author prefers rotating MSFT proceeds into META because the stock will look cheaper on trailing earnings soon. PE compression is an accounting artifact; guidance, AI capex, or ad-cycle weakness could offset the effect.
This Reddit post, published August 11, 2026,
features u/YouHaveShitBreath
discussing MSFT, META.
2 trade ideas extracted by AI with direction and confidence scoring.