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# Microsoft: Business Gets Better But Watch The Valuations (Archive)
- URL: https://www.huntingalphas.com/microsoft-business-gets-better-but-watch-the-valuations-archive-copy/
- Published: 2023-07-31T13:00:00.000Z
- Updated: 2026-02-27T05:30:04.000Z
- Description: Strong business momentum, but elevated valuations warrant a patient, neutral stance on Microsoft.
- 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

- Microsoft beat consensus estimates on both revenues and margins, albeit by a lower degree than the median average. But the guidance outlook has disappointed.
- Q4 FY23's earnings call set a bullish tone for Microsoft's relative strength as it continued gaining share in multiple product categories.
- From an absolute growth perspective, MSFT stock is facing headwinds in Azure, ad-spending, and gaming. It is not the same as the high growth times of 2020-2021.
- The stock is still trading at valuations near the 2020-2021 period. One can argue it is due to the promising AI opportunity. However, management indicated that material monetization is still a while away.
- Whilst I am a long-term Microsoft bull, I believe the valuations demand a neutral/hold stance as I anticipate the stock to perform in line with the market.

Read the full article [here](https://seekingalpha.com/article/4621662-microsoft-business-gets-better-but-watch-the-valuations?ref=huntingalphas.com).

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