Microsoft's Share Price Is Still Not Justified

Summary

  • Microsoft is continuing to report great results quarter after quarter and is still optimistic for the coming year.
  • Nevertheless, we should not ignore the risk of a potential recession, and considering the high growth rates necessary for Microsoft to be fairly valued, we should be rather cautious.
  • In my opinion, Microsoft remains a "Hold"

NguyenDucQuang/iStock Editorial via Getty Images

My last article about Microsoft Corporation (NASDAQ:MSFT) was published in December 2023, a few days before Christmas. And similar to previous articles about Microsoft, I rated the stock as a “Hold”. In the meantime, the stock increased about 11.5% whileSPY

Data by YCharts

Quarterly Results

Microsoft Q424 Presentation

Microsoft Q4/24 Earnings Release

Data by YCharts

New Reporting Structure

Microsoft Fiscal 2025 Investor Metrics

Microsoft Fiscal 2025 Investor Metrics

Outlook: Growth, Recession and Moat

Microsoft Quarterly EPS Estimates Revisions (Seeking Alpha)

Microsoft Consensus EPS Estimates (Seeking Alpha)

Global Cloud Market Shares (Statista)

Intrinsic Value Calculation

Data by YCharts

Data by YCharts

Conclusion

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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