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Is Microsoft Stock A Buy, Sell, Or Hold As It Reaches All-Time Highs?


  • Microsoft is one of the core holdings for tech and growth investors.
  • The company has continued strengthening its edge in the Cloud SaaS market to close the gap against AWS in the Cloud IaaS market.
  • We discuss whether Microsoft stock is a Buy, Sell, or Hold near its all-time highs.
  • I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Herzliya, Israel, April 4, 2017: Modern futuristic architecture building housing Microsoft R&D offices

photobyphm/iStock Editorial via Getty Images

Investment Thesis

Microsoft Corporation (NASDAQ:MSFT) is one of the core holdings of many growth and tech investors' portfolios. It also briefly took the rein as the world's most valuable company when Apple (

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This article was written by

JR Research profile picture

JR Research is a seasoned investor with a background in economics. He focuses on identifying 3 main things - leading growth companies, emerging market trends, and secular growth opportunities. His approach combines price action with fundamentals investing.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. The group is designed for investors seeking to capitalize on emerging, high-growth opportunities, and investors looking for sustainable growth opportunities at a reasonable price.

Learn more

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AAPL, GOOGL, FB, MSFT, AMZN, CRM either through stock ownership, options, or other derivatives. 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.

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Comments (68)

It would help if commentators disclosed their long short positions ( ideally quantified and verifiable) in the same way as authors.
Let’s keep comments meaningful and relevant - provide support for your thesis or argument. For those who do this already- well earned kudos.
xskiier profile picture
As my husband and I are in our 70's we have chosen not to reinvest our dividends at these high prices ... but, will remain long term holders of MSFT.
When Satya leaves $MSFT then I'll stop buying the stock and sell all of my shares!
@sd55 , wrong. MSFT is money machine. CEO is just a sentiment.
@MLian I strongly disagree. Satya is not a sentiment; not a figure head.

Steve Ballmer was just a sentiment or worse as MSFT shares dropped 36% under his leadership. In fact he regrets not entering the cloud sooner. Lack of foresight.

Microsoft has enjoyed strong sales and earnings thanks to the cloud leadership position it established since Nadella took over as CEO in 2014. MSFT share price has increased over 600% since Feb 4, 2014.
@sd55 Agreed that Balmer was a negative sentiment. But he was the one who promoted Satya to be a positive sentiment. The history shows that Balmer was right and Satya serving his purpose. BTW, Balmer is the biggest MSFT shareholder.
Outdexer profile picture
if you want to understand why this is not a good entry point, I urge you to use the charting tool and look at the price/sales max chart. msft is not immune to revaluation.
No idea whether its overvalued or not, but I don’t think there’s any data to show its “closing the gap” with AWS. The gap is very likely to be widening.
@metoo5 how so?? Azure has been growing faster than AWS for quite some time now, and shows very little sign of deceleration
08 Jan. 2022
@Xkdodifkdl forcing customers to upgrade due to widely known security gaps should not be considered “growth”.
A better metric may be market share transition: in which case AWS is eating Microsoft’s lunch…purely on the fact that they have no install base to go and coerce.
@Pjs4 Azure is gaining market share at a fast pace...
05 Jan. 2022
Microsoft is among the most crooked and dastardly companies on earth.

They’ve been deploying the same unethical tactics since the late 80’s.

They treat their customers like addicts. When those customers begin to even think about moving off of Microsoft’s solutions, the company will bundle their install into a new “flavor of the week” concoction that marketing drummed up (for example, M365 P1-EMS E3, or M365 P2-EMS E5). Hundreds of SKUs merged into a single line item; in turn forcing their customers to crawl through complex product suites and stitch them together in *hope* of the end product working as planned. No wonder the IT industry has difficulty retaining talent…

Oh, and let’s not forget that Microsoft has had more outages and downtime in the last 24 months than AWS, GOOG, and Oracle combined. But hey…I guess Xbox is worthy of a trillion dollar market cap.

Just the tip of the iceburg:


If interested in more, just ask…or better yet, just google it.
@Pjs4 , still Microsoft is better money maker that all other folks.
Steve Kean profile picture
Great company, great business, stellar balance sheet. But overvalued. So currently a HOLD if held in a taxable account, and was a sell at $340 in a non-taxable account.

Being tactical will matter in 2022. While I’m optimistic for mega techs, there will be better (re)entry points for patient investors.
Hold. Waiting for P/E to come down to upper 20s before I would start nibbling.
MR. TRANQUILITTI profile picture
What a coincidence CEO sold half his holdings - oh yes for tax purposes..... 🤧
MR. TRANQUILITTI profile picture
$200 soon ...........
Henry_22 profile picture
Steve Ballmer sad :(
Diesel profile picture
Come to think of it, this stock had a P/E of 12 just a few years ago and people were saying "it's cheap for a good reason". LOL
@Diesel, that’s when I bought my stake in Microsoft. It’s too bad I sold it in the fall of 2021.
RLJ3033 profile picture
@Jeff Milligan Luckily, I've only sold 2/3. It's still a 7x banger, barely, but I find it hard to justify the valuation the last year or two.
Long $MSFT. Best place to be.
05 Jan. 2022
@Calm_Investor_999 I’d rather invest in cartels
Did Microsoft CEO sold his other half of MSFT stocks holding?
MR. TRANQUILITTI profile picture
@MLian Yes but it was suppose to be because of tax reasons.............🤧
Triple A, rated dow member MSFT, well run company with an outstanding CEO, its a hold at this time.
@Money 29 I agree...if you wanted to lock in some profits on a portion if held over a year I would knock anyone for doing that given the market at the moment. Maybe you can get a little lower. But I would not do if not getting LTCG treatment on what you sell.
MR. TRANQUILITTI profile picture
The Microsoft correction has only just begun..........

So far this new year looks like a lot of profit taking.
Long time holder and will stick with this fantastic company.
05 Jan. 2022
@mok31 Will crumble once anti-trust forces the company to break up. Too much user data, piss poor security policies, even worse managerial ethics.

Get out now and take the cake before it’s too late
Not sure who selling lately. They will be buying back post earnings.
MR. TRANQUILITTI profile picture
@stockdox Microsoft always sells off after earnings no matter what. 🤧
Henry_22 profile picture
Dropping like a rock the past two days.
TraderDad22 profile picture
@Henry_22 Bit of a breather before the next leg up. Considered healthy ;)
MR. TRANQUILITTI profile picture
@TraderChimp Or kick down......

@Henry_22 A rock in a volcano thats about to blow to the moon. Keeping the hyperboles going!
Holding since 2011 at 24 and the company continues year after year to grow revenue, earnings , dividends and FCF despite its scale. Extremely diversified product line and major presence in cloud computing which is growing at close to 50% annually. Finally one of only two companies with an A+ financial rating. Price needs to stabilize a bit and let earnings catch up but I can see $400 and possibly $500 per share at some point
JR Research profile picture
@Jlexus1953 Thanks for sharing your insights! Agree with your points. It has demonstrated its capability to transform itself into a massive cloud giant.
@JR Research Bless you both...don't forget their earnings report. Only product line not make $$ is the surface, which was expected. Don't mind this little drop at all, picking up more! :)
05 Jan. 2022
@Jlexus1953 crooks. Just read my thread above. They’re the most attacked, most unethical, most insecure, and laziest tech company on earth. Why patch a security problem when we could leave it alone and force customers to upgrade to protect themselves.

The drug dealers are running the rehab centers
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