Microsoft Stock Trades at Compressed Valuation Ahead of July 29 Earnings

Earnings Impact 4
โดย 24/7 Wall St.·Read original
Summary · why it matters

Microsoft shares are down 20.72% year to date at $381.70, compressing the forward price-to-earnings ratio to 20 despite Azure growing 40% and the AI business surpassing a $37 billion annual revenue run rate. CEO Satya Nadella confirmed the AI revenue run rate rose 123% year over year, while Microsoft Cloud revenue hit $54.5 billion in a single quarter, up 29%. The company’s commercial remaining performance obligations reached $627 billion, nearly doubling year over year, and operating margin stood at 45.62%. Capital expenditures jumped 84.39% to $30.88 billion last quarter, a risk the author acknowledges but counters with the contracted backlog and accelerating AI monetization. The author is adding to the position before the fiscal fourth-quarter report on July 29, citing the combination of high-margin growth and a discounted multiple.

Impact on stocks 3

Artificial Intelligence▲ · 3 stocks
Microsoft Corporation
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▲ PositiveCapitalrelevance

Article highlights compressed P/E, high-margin growth, and author's bullish stance ahead of earnings.

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