Forget the S&P 500: Microsoft Remains One of the Best Stocks to Own | The Motley Fool

Forget the S&P 500: Microsoft Remains One of the Best Stocks to Own | The Motley Fool

By Marc Guberti
Publication Date: 2026-08-24 12:42:00

The S&P 500 is up by more than 10% this year, and its growth has outpaced Microsoft (MSFT +0.01%), but I don’t think that trend will last too much longer. Microsoft’s 20% return over the past month shows that more investors are spotting the opportunity.

Its earnings results were the major catalyst behind the surge, and there were a few details in the report that make me think Microsoft is a more promising investment now than the broad-market S&P 500.

Image source: Getty Images.

Cloud computing revenue continues to grow

Most of Microsoft’s growth is coming from its cloud computing unit. Revenues from that part of the business were up by 27% year over year in Microsoft’s fiscal 2026 fourth quarter.

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