Microsoft looks like a solid bet for long-term investors
Posted: Dec 14, 2024
- Microsoft made a $13 billion investment in OpenAI for AI
- Azure AI services grew 30% in Q3 2024
- Azure has 23% of the cloud market, revenue up 29% to $24.3 billion
- Microsoft 365 has over 1.4 billion users
- Gaming revenue up 43% after acquiring Activision Blizzard
- Xbox Game Pass has over 25 million subscriptions
- Surface device revenue up 10% to $1.5 billion
- Market cap is $3.34 trillion, stock up 20% in last year
- P/E ratio around 36x, operating income up 21% to $33.7 billion
- Projected growth in free cash flow is 9.1% over the next ten years
- Overall stock score is 8 out of 10 according to Value Sense
What do people on Reddit think?
🚨 Reddit sentiment: mixed/positive - While there are some concerns about AI revenue and reliance on historical performance, the majority of comments focus on Microsoft's strong market presence and ongoing potential as a solid long-term investment. Summarized comments: - Microsoft is seen as a solid investment due to its widespread use in businesses through Windows and Office - Some comments mention that Microsoft's cloud and AI offerings are easy upsells - Microsoft's investment in OpenAI is seen as beneficial, but questions about the ROI are raised - Concerns are expressed about AI revenue, with 1.4 billion MS users but only 1 million copilot sign-ups in 6 months - Microsoft is only considered second to Google by some commenters - There is a history of Microsoft being a solid company to invest in, and it's part of the Mag 7 - Some comments sarcastically dismiss concerns about Microsoft's potential as a long-term investment Stock tickers discussed: $MSFT
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