1. The author finds Microsoft's AI growth story compelling but questions the justification of $80B in CapEx. 2. Concerns are raised about recent data center slowdown signals, such as the dropped $12B CoreWeave extension and the $1B delayed Ohio project. 3. The author sees Microsoft's valuation as stretched, with elevated P/S and P/CF multiples compared to peers. 4. On the positive side, strong AI-driven Azure growth is noted, with AI services contributing 13 points to a 31% yoy increase in cloud revenue. 5. The author leans towards a Hold rating, citing strong fundamentals offset by valuation and signs of softening AI infrastructure demand.
Related Articles
- Amazon: Despite Bull Hype, Stock Price Same As 4 Years Ago5 months ago
- Tesla Stock Doesn't Deserve This Rally10 months ago
- These REITs Trade At Discounts, But Should They?10 months ago
- Little Support For Eli Lilly's High Valuation12 months ago
- Quantitative Comparison Makes Coca-Cola A Top Pick For Long-Term Investors3 months ago
- High-Quality Dividend Growth Stocks Near 52-Week Lows: Alphabet Is Astounding4 months ago
- Correction Alert: Popular Dividend Growth Stocks Due For A Sharp Pullback4 months ago
- Spire Global: Same Buy Price With No Debt4 months ago
- VICI Properties: Investors Are Misunderstanding The Earnings Report5 months ago
- Shopify: Prime Candidate To Join The $500 Billion Club One Day6 months ago