$Microsoft(MSFT)$  is one of the best stocks to own. Microsoft has consistently delivered double-digit revenue growth, with strong performances across cloud computing (Azure), software (Windows, Office), and hardware (Surface, Xbox). With gross margins exceeding 68% and operating margins above 40%, Microsoft maintains one of the most profitable business models in the industry. Microsoft generates billions in free cash flow annually, providing flexibility for acquisitions, research and development, and shareholder returns. Microsoft’s continued investments in AI, hybrid cloud, and cybersecurity further strengthen Azure’s long-term growth potential. 

Microsoft is at the forefront of artificial intelligence, making strategic investments to drive long-term growth:

• Investment in OpenAI: Microsoft’s multi-billion-dollar partnership with OpenAI integrates AI capabilities into its products, including Microsoft 365 Copilot, GitHub Copilot, and Azure AI.

• AI-powered cloud services: Microsoft is embedding AI into Azure to attract businesses seeking AI-driven cloud computing solutions.

• Productivity AI tools: AI integration in Office 365 enhances user efficiency and enterprise adoption.

AI advancements will further enhance Microsoft’s business model, increasing customer retention and pricing power.

Microsoft benefits from a diversified and recurring revenue model:

• Subscription-based services: Microsoft 365 (formerly Office 365) and Azure provide predictable and growing revenue streams.

• Enterprise contracts: Long-term partnerships with Fortune 500 companies ensure sustained revenue growth.

• Strong brand loyalty: Microsoft’s ecosystem (Windows, Office, LinkedIn, Xbox, Azure) creates high switching costs for customers.

Its economic moat, built on software dominance, cloud integration, and AI leadership, protects Microsoft from competition. 

Msft is currently trading at the 100 weekly moving average which is a great level to be dollar cost averaging into the stock.