$MSFT

MSFT is fairly to slightly undervalued and expected to keep performing well; maintaining its 32x P/E on the earnings path implies a $770 stock in 18 months, another 40-50% gain.

BullishHe framed it in months
“Don’t Overthink the Magnificent Seven”
Rich HabitsPublished Oct 19 · 7 passages

Jump to any passage

7 passages
6:2313:28

So, if you don't have exposure to Google, Meta, Microsoft, or Amazon, I highly recommend building a suitable investment portfolio and, perhaps like me, increasing my weight in the "Great Seven".

but I also have a large investment position in Amazon, a large position in Microsoft, a growing position in Meta, and a growing position in Alphabet.

I still believe that big tech stocks like Amazon, Microsoft, Meta, Apple, and, you know , Nvidia, and the like, will continue to perform well.

Another great company to talk about is Microsoft. I will actually open its chart on " TradingView". Who among you remembers? Perhaps I can find a post about that. But who among you remembers , I think it was in May or April, when Microsoft was trading below its 200-week moving average?

I sat here on a live broadcast and said to everyone: "Guys, Microsoft is trading below its 200-week moving average." If we go back in time to Microsoft's history and look at this 200-week moving average, this blue line, every time the stock has traded at or below this average, I have drawn this line up.

I even drew this line. Every time the stock traded at or below this 200-week moving average, right? That was a good reason to buy. That's right, that goes back to 2012. So, over the course of 15 years, right?

Looking back about 15 years, buying at the 200-week moving average was a good idea. Well, it happened in 2012. And it happened during 2022 during the bear market we experienced.

Then it just happened earlier this year in March. The stock was trading, and I remember buying more in my brokerage app. At what price was it trading? 365, 368. I know that Christian was very excited about this stock.

Eric, Robert, we were all talking about buying Microsoft at or below this 200-week moving average. Well, congratulations. The stock has now risen by 48% or 49% in about 6 months.

And if you have been following us on this, you have just paid for your annual subscription to the "Reach Habits" network. I mean, about more than 40 percent in just 6 months for a huge company like Microsoft.

Now she says, "Austin, great. Microsoft has reached new record highs. What do I care? I missed out on the trade. I missed out on this investment." Whatever the case. Not that fast.

So, let's actually move to " Fast Graves" because it's a little easier for me to do this dynamically here. Now, let me quickly type my password so you don't see anything. It's not that you're going to hack my Fast Graves account.

You will not do that. you all. Good. So now let me go to Microsoft here and get rid of this. Good. Ah, here we are. Now let's move on to the past twelve years . This sounds absolutely fantastic to me.

I mean, wow. I don't know about you, but I'm looking at this here. It looks like a black line, doesn't it? The stock price tends to follow the blue line , which represents their earnings per share.

Yes, like all stocks, it's like a pendulum . It becomes overvalued, then undervalued, then goes back up and down. So, in 2021, it was overvalued . Then it became undervalued. Then it became higher, then lower, then higher , then lower.

It was significantly undervalued when we talked about it with the 200-week average at that time in April. But what is its status now? If you look at it like I do, it's fairly housed here, isn't it?

We get there, it's still slightly undervalued , but you know where the blue line is headed. It's at [a certain place], what is this? Um, $500, no. Yes, $543 per share. or. I mean, if you maintain the same price-to-earnings ratio of 32, that's a $770 stock in 18 months. What does that mean? Another 40% or 50% profit?

Um, so, just a quick reminder, Amazon, Microsoft, Meta, Apple, like investing an average dollar amount in these giants, the "Great Seven," isn't a bad idea.

What this channel has said about $MSFT

Rich Habits has 3 calls on this stock; only the adjacent ones are shown.

TickerSays