MSFT trades at 25x forward earnings despite 32% earnings growth, Azure crossing $100B in revenue, and commercial obligations surging 84% to $678B. Reaching $750 by 2030 requires 51% gains but becomes reasonable in the mid-20s P/E range applied to projected 2030 earnings. The biggest threat to the $750 target is hyperscaler AI oversupply compressing cloud margins before revenue catches up.
Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Microsoft didn't make the cut. Enter your email to see the names that beat MSFT. Enter your email and see if any of your stocks made the cut.
Microsoft (NASDAQ:MSFT) just closed a fiscal year where Azure crossed $100 billion in revenue, Microsoft 365 Copilot passed 30 million paid seats, and commercial remaining performance obligations surged 84% to $678 billion. Yet shares are up just 3.14% year to date. That is the disconnect I want to unpack.
Can Microsoft, at $495.63, actually reach $750 per share by 2030? I think the blueprint exists, and I want to walk through it. The stock has gone nowhere for a year.
MSFT is down 0.26% over the past 12 months, off 0.81% in the last week, and up a modest 0.84% over the last month. The market's concern is simple. Capital expenditures exploded to $115.95 billion in FY2026, up 79.62%, and free cash flow fell 6.46% despite record profits.
Investors are asking whether the AI infrastructure buildout will earn its cost of capital. With a beta of 1.11, MSFT is not shielded from that anxiety. CFO Amy Hood pushed back directly, saying the CapEx pivot toward "short-lived assets" like CPUs and GPUs gives Microsoft flexibility if demand shifts.
Extract — continue reading at the source.
