Stock Deep Dive · 2026-08-07
Microsoft (MSFT) closed at $499.99, up 0.03% on the day. Year-to-date return is +3.8%, sitting at 74% of its 52-week range. Earnings for the quarter were reported on 2026-07-29 (EPS $4.74 vs $4.24 consensus, +12%).
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Close
$499.99
+0.03% · YTD +3.8%
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Market Cap
$3,712.70B
Software – Infrastructure
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Forward P/E
21.3x
PER 27.8x
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52-wk Range
74%
High $553.72 · Low $349.20
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🔍 At a Glance
Microsoft continues to fire on all cylinders: quarterly revenue growth of +17.7%, a 46.8% operating margin, and 34% ROE are figures most megacaps can only dream of, and 53 analysts still carry a strong_buy consensus with a $563 average target. The bear case is really a valuation and momentum concern — trading at 27.8x trailing earnings and 21.3x forward, with RSI at 81.4 and the stock 22.4% above its 60-day average, MSFT looks stretched and priced for continued perfection.
🏢 How It Makes Money
Microsoft’s engine runs on three legs: Productivity and Business Processes (Microsoft 365, Teams, LinkedIn, Dynamics 365, and the newly bundled Copilot), Intelligent Cloud (Azure and server products), and More Personal Computing (Windows, devices, gaming). The common thread across all three is the push to layer AI — via Copilot and OpenAI-powered tools — onto existing enterprise relationships, converting subscription seats and cloud consumption into higher-margin revenue.
📈 Quarterly Results — Is Business Growing?
| Quarter | Revenue | Op. Income | Net Income | Op. Margin |
|---|---|---|---|---|
| 25Q2 | $76.44B | $34.32B | $27.23B | 44.9% |
| 25Q3 | $77.67B | $37.96B | $27.75B | 48.9% |
| 25Q4 | $81.27B | $38.27B | $38.46B | 47.1% |
| 26Q1 | $82.89B | $38.40B | $31.78B | 46.3% |
| 26Q2 | $90.01B | $40.60B | $35.77B | 45.1% |
Latest-quarter revenue up +17.7% versus the same quarter a year ago.
💡 Korea Market 101
⚖️ Valuation — Cheap or Expensive?
| Metric | Value | How to read it |
|---|---|---|
| P/E (trailing) | 27.8x | Price vs last 12 months’ earnings |
| P/E (forward) | 21.3x | Price vs next 12 months’ expected earnings — growth hopes baked in |
| P/S | 11.2x | Price vs revenue — for high-growth names with thin profits |
| P/B | 8.4x | Price vs book value — below 1x means priced under liquidation value |
| PEG | 1.6x | P/E ÷ growth — near 1 is fair for the growth; above 2 is demanding |
| EV/EBITDA | 19.4x | Enterprise value (incl. debt) vs cash generation |
Peer comparison
| Name | Mkt Cap | P/E | Fwd P/E | P/S |
|---|---|---|---|---|
| Microsoft Corporation | $3,712.70B | 27.9x | 21.3x | 11.2x |
| Alphabet Inc. | $4,333.07B | 17.8x | 24.0x | 9.7x |
| Amazon.com, Inc. | $2,960.63B | 22.1x | 26.6x | 3.8x |
| Oracle Corporation | $423.49B | 25.3x | 13.5x | 6.3x |
💡 Korea Market 101
🎯 Street Consensus
- Price target (mean): $563.35
- Target high / low: $870.00 / $400.00
- Implied upside: +12.7%
- Rating: Strong Buy (1.4/5)
- Analysts covering: 53
- Last earnings: 2026-07-29 — reported
💡 Korea Market 101
📉 Price Action — Technical Check
| Indicator | Value | How to read it |
|---|---|---|
| RSI (14d) | 81.4 | Above 70 overbought · below 30 oversold |
| vs 60-day MA | +22.4% | Above/below the medium-term trend |
| vs 200-day MA | +15.8% | Above/below the long-term trend |
| Golden/death cross | 50-day below 200-day (bearish alignment) | 50-day MA crossing above (golden) or below (death) the 200-day |
| Volume (vs 20d avg) | 0.6x | 2x+ means a spike in market attention |
💡 Korea Market 101
📰 Recent News
- After Earnings, Is Microsoft Stock a Buy, a Sell, or Fairly Valued? — Morningstar
- Microsoft: No Dead Cat Bounce Here (Q4 Review) (NASDAQ:MSFT) — Seeking Alpha
- Why Microsoft Stock Surged 24.6% in July While the Market Was Flat — Yahoo Finance
- Microsoft: AI Investment Is Driven By Orders Already In Hand (NASDAQ:MSFT) — Seeking Alpha
- Microsoft AI exec tells developers to default to OpenAI’s top model as part of efficiency push — CNBC
- The Core Bull Thesis Around Microsoft Remains Very Strong at $500 — 24/7 Wall St.
How to read these headlines
The headlines collectively reflect a market still digesting a huge post-earnings rally (+24.6% in July) and debating whether the AI-driven capex is justified by orders already in hand rather than speculative buildout. The detail about defaulting developers to OpenAI’s top model suggests Microsoft is prioritizing efficiency and cost discipline in its AI stack, a signal worth watching since AI infrastructure spending directly pressures margins and cash flow, which underpin the premium valuation multiples investors are currently paying.
Headlines are credited to their publishers — click a headline to open the original article. The commentary is written by this site and does not represent the views of any publisher.
💡 Korea Market 101
🔭 Scenarios & What to Watch
The next earnings report on 2026-10-28 will be the key checkpoint — watch Azure growth rates, capital expenditure trajectory for AI infrastructure, and whether Copilot adoption is translating into monetizable revenue rather than just usage stats. Bulls want continued double-digit cloud growth and margin resilience despite heavy AI spending; bears will point to the stretched technical setup (52-week position at 74%, well above MA200) as ripe for a pullback if guidance disappoints.
💡 Korea Market 101
📚 All stock analysis · More on Microsoft · Market report for this session
Stock report · published 2026-08-08 07:27 KST
For information only — a summary of public data, not a recommendation to buy or sell any security. Source data (Yahoo Finance and others) may be delayed or contain errors. All investment decisions are your own responsibility.
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