Anonymous1 day ago
Microsoft stock has pulled back roughly 20% from its highs, currently trading near $394, leaving the PE ratio at a five-year low of ~24x. Analysts project earnings per share could reach $23 or more within three years, and if the stock returns to its historical 33x multiple, the price target lands near $774 — effectively a double. However, ballooning AI infrastructure spending that could exceed $100 billion annually, mounting competitive pressure from Google and Amazon, and questions about whether Copilot can justify its $30-per-seat price tag present material risks to the bull case.