Microsoft: Undervalued With Outstanding Cloud Growth

Dec. 27, 2022 6:48 PM ETMicrosoft Corporation (MSFT)GOOG, GOOGL, AMZN20 Comments
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Deep Tech Insights


  • Microsoft Corporation is a leading technology company that owns the second largest cloud provider, Azure, as well as its leading operating system Windows.
  • The company reported strong financial results in Q1FY23, beating both revenue and earnings forecasts.
  • Microsoft's cloud segment has continued to produce solid financial results, while its gaming & PC segment is going through a cyclical downturn.
  • Microsoft Corporation stock is undervalued intrinsically and relative to historic multiples.

Microsoft France headquarters entrance in Issy les Moulineaux near Paris

Jean-Luc Ichard

When tough economic times reign, we see who has the best and worst business models. Many of the so-called "FANG" stocks such as Facebook (now Meta Platforms (META)), Amazon (AMZN), Netflix (

Data by YCharts

Segment Revenue

Segment Revenue (Q1,FY23 report)

Productivity segment

Productivity segment (Q1,FY23)

Intelligent Cloud

Intelligent Cloud (Q1,FY23)

Cloud market share

Cloud market share (Statista)

More Personal Computing

More Personal Computing (Q1,FY23)

More Personal Computing

More Personal Computing (Q1,FY23)

Microsoft stock valuation 1

Microsoft stock valuation 1 (created by author Ben at Motivation 2 Invest)

Microsoft stock valuation 2

Microsoft stock valuation 2 (created by author Ben at Motivation 2 Invest)

Data by YCharts

This article was written by

Deep Tech Insights profile picture
Senior Investment Analyst for Hedge Funds. Interviewed Hedge Fund Managers and CEO's. Investment Strategy: Focus on Deep Dive Valuation, G.A.R.P (Growth at a Reasonable Price). Masters in Equity Valuation, 755+ Companies Analysed.

Disclosure: I/we have a beneficial long position in the shares of MSFT 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.

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