Microsoft Stock Remains A Table-Pounding Buy

Microsoft delivered robust Q4 results, with 18% YoY revenue growth and a strong performance from Intelligent Cloud and Productivity & Business Processes. The Intelligent Cloud segment accelerated to 31% constant currency growth, with Azure up 43%, justifying elevated CapEx. Guidance for Q1 implies continued strength, with revenue growth expected to be at 33% for Intelligent Cloud, reinforcing the bullish outlook.

I reaffirm my strong buy rating on Microsoft, citing attractive valuation, resilient fundamentals, and a favorable risk/reward profile despite regulatory and supply chain risks.

In mid May, I reiterated my strong buy rating on Microsoft Corporation ( MSFT ) and called the stock a table-pounding buy. I cited overblown SaaSpocalypse fears, strong performance in Azure, and an attractive valuation.