Microsoft's Future: A $900 Share Price?

USAFri Oct 18 2024
You might remember my last article about Microsoft Corporation (NASDAQ: MSFT) where I said, "Don't bother with the price now. " Back then, Microsoft's stock was valued at around 40 times its Blended P/E. As a financial analyst with 30 years until retirement, I'm using my time at a big-name firm to create a portfolio that beats the market. I focus on strong, reliable companies that have a competitive edge and make a lot of profit. These companies should be reasonably priced compared to their future growth. Now, I'm taking a fresh look at Microsoft. The company has been making smart moves, and I'm seeing potential. The stock might reach $900, which is quite a jump from the current price. But let's not get ahead of ourselves. We need to think about the company's future growth. A high stock price isn't worth much if the company isn't doing well. Investing in dividends isn't just about getting a high yield. It's about the flow of free cash. Microsoft has been doing well on this front, which is encouraging. But again, we need to consider the company's future performance. A high stock price now doesn't mean much if the company's growth slows down later. Remember, past performance doesn't guarantee future results. My opinions are my own and don't reflect the views of the company I work for. These are just my personal thoughts on Microsoft's future.
https://localnews.ai/article/microsofts-future-a-900-share-price-5d77e45

questions

    How would you explain Microsoft’s stock price to someone who has been living under a rock for the past half a year?
    How does Microsoft's P/E valuation today compare to its historical averages and industry standards?
    What factors should investors consider when assessing Microsoft's current stock price relative to its value half a year ago?

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