By Trefis Team
Publication Date: 2026-10-14 18:19:00
Most investors apply one rule to a stock like Microsoft (MSFT): buy low and never at the top. Microsoft stock closed near its 52-week high on October 13, 2026, making it the wrong time to buy under that logic. Rather than asking whether the price is too high, market participants should examine the historical performance of Microsoft’s earlier highs. Does that rule hold for Microsoft?
Why Microsoft Stock Is At A High
Microsoft stock is at a high because the company earns more than it did a year ago. The share price rose 6.4% before dividends over the past year, while net income for the twelve months to June 2026 rose 31.3%.
Investors are actually paying less for that profit. The price-to-earnings multiple, which measures what investors pay for each dollar of profit, was 37.3 a year ago and is 30.2 now.
That growth is clearest in the cloud business. Revenue from Azure and other cloud services grew 43% in fiscal Q4 2026, the quarter to June. Management noted on…
