I've been paying a bit more attention to $Microsoft(MSFT)$ lately.
One data point really stood out to me.
The last time Microsoft traded around 20x forward earnings, the stock went on to return 200%+ over the next two years.
Does that mean it'll happen again? Of course not.
But Microsoft today is arguably an even stronger business than it was back then.
• Azure continues to benefit from AI demand
• Copilot is becoming part of enterprise workflows
• Cash flow and the balance sheet remain best-in-class
I'm not in a rush to call the bottom, but when one of the highest-quality companies in the market starts looking reasonably valued, I pay attention instead of looking away.
I'm slowly building my watchlist here.
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.
