By Trefis Team
Publication Date: 2026-01-07 15:10:00
GERMANY – 2026/01/06: In this photo illustration, Microsoft Corporation logo seen displayed on a smartphone. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
Microsoft stock is up 13% in a year, slightly underperforming the broader S&P 500 index, up 18%. Investors are now reassessing the AI-driven growth expectations. The key question is whether MSFT stock is still a buy at levels of around $480. We don’t think so. As an aside, see: Can Nvidia Outrun Analog Devices In The Next Rally?
Our multi-faceted evaluation indicates that it might be time to decrease exposure to MSFT stock. Our main concern is the current valuation, and a price of $337 may not be too far off. We believe there is not much to fear in MSFT stock considering its overall Strong operational performance and financial health. However, due to its Very High valuation, the stock seems Relatively Expensive.
Below is our evaluation:
MSFT Stock Evaluation
