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Introduction
Microsoft (NASDAQ:MSFT) (TSX:MSFT:CA) is a company I strongly endorsed over a year ago. The stock has risen over 20% since my last time of writing, and today I'm back to continue pounding the
Microsoft: Financial Strength Personified, Remain Strong Buy
Summary
- Microsoft remains a strong buy due to its unmatched business strength, diversified revenue streams, and visionary leadership under Satya Nadella.
- The company boasts dominant moats in enterprise software and operating systems, ensuring recurring revenue and high customer retention.
- Azure cloud growth, especially from AI workloads, is a key driver, with robust demand and quantifiable returns justifying continued high capex.
- While valuation is elevated, Microsoft's predictable earnings growth and strong buybacks support further upside, with risks mainly tied to leadership transition and market multiples.
Professional equity portfolio manager for a boutique buy-side asset manager.My focus is on finding high-quality companies, applying a disciplined approach to valuation and identifying underappreciated opportunities. My goal is to identify opportunities in cash-rich companies with strong balance sheets and shareholder friendly policies. I endeavour to incorporate a mix of quantitative and qualitative measures to identify opportunities in stocks. Long-only approach with a long-term investment focus.
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.
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