By Keithen Drury, The Motley Fool
Publication Date: 2026-05-27 18:15:00
Over the past few years, Microsoft (NASDAQ: MSFT) has traded at a premium to the market. However, that’s no longer the case. The company didn’t do much to lose this premium; instead, it looks like that premium shifted to Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). However, I think that has created a potential opportunity for Microsoft stock to rally over the next few months and regain its premium valuation by the time 2026 is over.
On a price-to-earnings basis, Microsoft stock hasn’t been this cheap since 2019, and based on the value proposition it’s offering investors, there has seldom been a better time to buy.
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Microsoft has reached a rare valuation point
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