By Nigam Arora & Dr. Natasha Arora
Microsoft (MSFT) is long from $32.88. It is trading at $494.24 as of this writing. This represents a gain of 1403%.
Monetizing Artificial Intelligence
Companies that can monetize AI are going to pull ahead. Microsoft (MSFT) is leading the pack.
Microsoft is benefiting from the following:
- Monetization of generative AI across the stack
- Microsoft Copilot deepening subscription revenue as it is embedded in Office, Dynamics, and Teams
- On-device AI with Copilot Plus PCs
Cloud Business
Microsoft’s Azure is compelling for investors. There is double digit growth in Azure. Its growth is accelerating ahead of the competition. Microsoft’s margins on Azure are also healthy.
Technicals
MSFT stock recently broke out.
Fundamentals
MSFT stock is currently expensive. The trailing PE is 37.88, and the forward PE is 32.68.
Risks
The Arora Report provides 360 degree analysis. No investment is without risk. Prudent investors must look at both the potential upside and potential downside.
Here are the key risks to MSFT stock:
- Competition to Azure from Amazon’s (AMZN) AWS and Google’s (GOOG, GOOGL) Google Cloud
- Supply constraints on advanced chips
- Tightened regulation of cloud platforms or AI
Zones
For those following the Good Way, the Buy Now rating is *** (To see the locked content, please take a 30 day free trial).
For those following the Best Way, the buy zone is $*** – $***.
The recommended quantity is ***% – ***%. Those starting a position now should consider limiting the quantity to 10% or less and plan on buying more if the stock dips further.
The target zone is being raised to $713 – $726.
What To Do Now
Those in MSFT may consider continuing to hold.
Those not in MSFT may consider following the parameters given above.
Note: Signal(s) to enter, add, reduce, exit, hold or change.
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This post was just published on ZYX Buy Change Alert.
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Nigam Arora
Nigam Arora is known for his accurate stock market calls. Nigam is a distinguished master of the macro. He is a popular columnist with over 100 million page views, an engineer, and nuclear physicist by background. Nigam has founded two Inc. 500 fastest growing companies and has been involved in over 50 entrepreneurial ventures. He is the developer of Theory ZYX of Successful Change Management and is the author of the book on Theory ZYX, as well as the developer of the ZYX Change Method for Investing.
Dr. Natasha Arora
Dr. Natasha Arora has significant expertise in investment analysis especially biotech, healthcare, and technology. Natasha is a graduate of Harvard Medical School followed by a postdoc at MIT. She has published several peer reviewed research papers in top science journals.
