When US market is wobbly, in what I termed a “stop-start” mode - I tend to watch more intently than jump in and buy because its so ‘cheap’.
Suffice to say, since 28 Feb 206 US market has kinda been like this - one day up and the next day down.
During such turbulence times, it is also “nice” to read all the (up-to-date) different hypothesis out there, on which is a better stock.
Apart from the technical analysis being taken care of and only needing to be verified, a reader can sometimes learn other facts & titbits about the stock/s covered.
Today’s is one such post. Without delay, let’s jump in.
Mag 7 - YTD.
Before we jump into the comparison between $Microsoft(MSFT)$ and $Alphabet(GOOG)$, it would be ‘ideal’ to know where each stock stands from the Mag 7’s 2026 YTD perspective. (see above)
From ‘best’ to ‘worse’ YTD performances, its as follows - GOOG, AAPL, NVDA, AMZN, TSLA, META & last but not least, MSFT.
Like me, are you too wondering if Motley Fool’s MSFT & GOOG comparison post is bias, you are not alone. (see above).
Still, I maintained an “opened” mind and continued with the reading.
MSFT: Steady Revenue Progression
MSFT is a company that develops and licenses software, digital services, and cloud computing solutions for global enterprises and consumers.
It recently entered a long-term power agreement with $Chevron(CVX)$ to support its data centers while facing a class-action lawsuit.
Earnings wise,it reported +38% net income margin for the quarter ended 31 Mar 2026.
GOOG: Maintaining a Larger Revenue Base
GOOG on the other hand, provides a diverse range of digital platforms, advertising solutions, and cloud services to global consumers.
GOOG executed a large equity capital raise and introduced several technological updates at its recently concluded developer conference - the “Google I/O Conference” held in Mountain View, California on May 19-20.
For 2026’s quarter ended 31 Mar 2026, GOOG generated +57% net income margin.
Revenue Matters !
For context, net income margin definition / formula is as above and it touches on Total revenue that is being discussed thereafter.
Revenue serves as a foundational measure of total money generated by core business operations before deducting expenses.
Tracking this metric helps investors measure a company's (a) total customer sales volume and (b) baseline growth trajectory over time. (see below)
MSFT & GOOG - Revenue growth QoQ
Quarterly Revenue Growth
Microsoft:
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Demonstrates exceptionally stable, continuous sequential growth.
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Its revenue climbed without a single quarter-over-quarter decline, moving steadily from $64.7 billion in Q2 2024 to a peak of $82.9 billion in Q1 2026.
Alphabet:
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Displays a highly cyclical, seasonal growth pattern.
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While its overall revenue expanded significantly over the period, it experiences sharp peaks in the 4th quarter (Dec 2024 at $96.5 billion and Dec 2025 at $113.9 billion), followed by sequential pullback dips every 1st quarter (March).
QoQ Revenue Growth
For a more ‘technical’ comparison, below is a tabulation of each stock’s QoQ revenue growth and an average to smoothen out the spikes & dips. (see below)
On average, GOOG's average sequential growth rate (+3.98%) marginally outpaced MSFT's (+3.64%).
That said, GOOG experienced a far wider variance due to its negative Q1 2026 contraction.
Foolish Comparison ?
Honestly, MSFT and GOOG are two of the premier companies worth investing in for investors seeking stocks in the Technology and AI sectors.
As data above shows, both are enjoying a trend of strong, sustained revenue growth.
This suggests both of their businesses are thriving as AI injects new life into their offerings.
Even so, MSFT and GOOG experienced share price declines recently due to substantial sums (Capex) they are spending on their AI infrastructure build out to support their AI systems.
As such, the situation creates a “Buy” opportunity for investors.
The “better” Buy.
(1) Better Value Purchase.
Although purchasing shares in both is ideal, if an investor has to choose one, Motley Fool’s recommendation is MSFT.
Why ? Its stock fell to a 52-week low of $349.20 on 25 Jun 2026.
As a result, MSFT’s forward price-to-earnings (P/E) ratio is 18.0, below GOOGt’s 24.0, indicating MSFT stock is the better value.
(2) Bigger Dividend Issue.
Although both pay a dividend, MSFT's dividend yield is far greater at 1.0%, compared to GOOG’s tiny 0.26%. The passive income adds to an investor’s total return.
(3) Current Noise.
Despite Wall Street’s current punish of MSFT, the company is doing well with above data revenue as proof.
For example:
MSFT’s latest sales revenue for quarter ending 31 Mar 2026, were $82.9 billion.
That was a strong +18% YoY growth.
With its trend of (a) rising revenue and (b) respectable dividend yield, MSFT is looking like an attractive stock to buy, now.
MSFT - Long Term Investment ?
The last time I covered MSFT back in 29 Apr 2026 (click here ! to refresh memory), it was still Wall Street’s one of few favourites.
Fast forward 2 months, the table has turned - it is now one of the untouchables because it is still falling. (see below)
As of Fri, 26 Jun 2026 end day
As usual, for technical analysis, I will be looking at MSFT’s (1) Simple moving averages of 20-day, 50-day and 200-day, (2) MACD and (3) RSI.
Simple Moving Average (SMA).
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MSFT closed on Fri, 26 Jun 2026 at $372.97 per share.
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This is lower than its 12-months SMAs of 20-day ($400.11), 50-day ($410.97) and 200-day ($447.98).
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This indicates a broad, synchronized downtrend across short, intermediate, and long-term horizons.
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Both Institutional and retail momentum has turned negative, with sellers outpacing buyers.
MACD.
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Both MACD (-13.10) and Signal (-9.81) lines are way above the Zero line, it implies MSFT is in a confirmed bearish regime where the 12-period average is lower than the 26-period average.
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With the MACD significantly below the Signal line - the "bearish” crossover confirms that short-term price momentum is outpacing the long-term trend.
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Lastly, a negative Divergence of -4.06 indicates that the gap between MACD & Signal is widening. implying current downwards momentum is gaining strength, rather than exhausting.
RSI.
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MSFT’s 14-day RSI came in at 40.43, it indicates mild bearish momentum with the stock neither overbought nor oversold.
Parting Thoughts.
Is the volatility surrounding MSFT really just a disconnect where short-term fear drops a financially stable company like MSFT, outside of the attractive value zone.
An astute investor will be acutely aware that current temporary noise provides a rare window to capture lasting long-term value.
Bill Ackman did.
On 15 May 2026, it was disclosed that his firm has been quietly accumulating shares in February 2026, after a stock decline. (see below)
Separately, Michael Burry (Scion Asset Management) disclosed in an April 2026’s 13F filing and subsequent strategic updates that he went long MSFT via December 2028 long-term call options (LEAPs), and added to the position during later MSFT pullbacks. (see below)
Are you or will you be - one of the astute investors ?
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Do you think US market has overreacted over MSFT’s capital expenditure on AI?
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Comments
MSFT is forecasted to open higher and GOOG lower. Is it too late for MSFT already or just about right with momentum rebuilding again ?
Decisions, decisions.
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