Microsoft: Big Tech Winner Still On Sale

Perseus Perspectives 906 Followers Follow Summary Microsoft is rated a buy, supported by strong Azure growth, Copilot adoption, and a valuation discount to historical averages. Azure revenue surged 43% with demand outpacing supply; guidance calls for further acceleration to 45% growth next quarter. Copilot reached 30 million paying seats, up 50% quarter-over-quarter, and is positioned as a core AI orchestration layer for enterprises. Despite OpenAI partnership risks, MSFT's broad-based demand, integrated AI strategy, and discounted PEG present a compelling entry point. Ivan Kyryk/iStock via Getty Images Introduction Microsoft (NASDAQ: MSFT ) has weathered some negative sentiment in the early part of the year, the narrative in Q1 revolved around the destruction of SaaS, a narrative which even the mighty Microsoft could not avoid. At This article was written by Perseus Perspectives 906 Followers Follow 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 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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.