Microsoft Corporation stock is down 18% and now the cheapest Mag 7 by valuation. Click for this updated look at MSFT ahead of its upcoming earnings.
Summary
- Microsoft Corporation is now the worst-performing Mag 7 stock, down 18% since August despite no fundamental deterioration.
- MSFT’s valuation has reset: now trading at 9.4x forward EV/Sales and 24x GAAP P/E, making it the cheapest in its peer group.
- AI monetization, particularly Copilot, is progressing slower than expected, with only 3.3% penetration among Microsoft 365 seats.
- OpenAI’s growing partnership with Amazon signals long-term risk to MSFT Azure’s AI moat, and I think that makes the April 29 earnings call pivotal.
- I hereon share my sentiment on MSFT and why I think the stock is forgotten, but not broken.
leolintang/iStock via Getty Images
Microsoft Corporation (MSFT) has gone out of the market’s favor, and I don’t say this lightly. The stock is now the worst-performing in the Mag 7, as seen below.
Microsoft is up around 4% over the
4.64K Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.