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# Microsoft: Backdated Azure Growth And Pricing Discounts Make The Stock Less Attractive (Archive)
- URL: https://www.huntingalphas.com/microsoft-backdated-azure-growth-and-pricing-discounts-make-the-stock-less-attractive-archive/
- Published: 2024-12-24T08:57:00.000Z
- Updated: 2026-02-28T07:09:36.000Z
- Description: Pricing discounts threaten Azure and Copilot margins while Microsoft trades at peak valuations.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, MSFT, Tech

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- My bullish thesis on Microsoft hasn't played out well, with Azure growth and ARPU pricing tailwinds not meeting expectations.
- Azure faces supply constraints and likely market share loss, and MSFT's custom AI chip development lags behind competitors, which can impact longer-term supply chain efficiency and higher costs.
- Recent pricing discounts on Azure OpenAI API and Copilot may pressure gross margins.
- 1-yr fwd PE valuations are near peak levels, trading at a 64% discount vs longer-term averages. I think this is too high for comfort for buys on the stock.
- Relative technicals are resting at support and are likely to consolidate first before rising up. And the removal of a clause barring MSFT from using OpenAI's AGI-level technology for commercial purposes is a key upside risk to monitor.

Read the full article [here](https://seekingalpha.com/article/4746189-microsoft-backdated-azure-growth-and-pricing-discounts-make-the-stock-less-attractive?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*