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Microsoft Stock Analysis: Is it Overvalued?

Microsoft was basically reinvented in 2014 by its new CEO Satya Nadella and has been in massive comeback mode. Even though it took a hit in March 2020 due to COVID-19, the Microsoft stock price was able to completely make up for the losses and reached a new all-time high level on June 10th, 2020. 

Now the question is, will its price go back down again so we can buy at a cheaper price… or did we miss the boat?

In this video, I’m going to analyze MSFT from the 5 points of my signature Invest Diva Diamond analysis which (IDDA) to find out what the future holds for the Microsoft stock price, what type of investors can consider adding Microsoft to their portfolio, and of course, whether or not I’m personally invested in the Microsoft stock.

Microsoft Stock Analysis - Fundamentals

Microsoft has continued its string of impressive quarters, even during COVID-19, with meaningful upside to their revenue, operating margin, and EPS.

What I like the most about Microsoft is that it has become one of two public cloud providers that can deliver a wide variety of PaaS/IaaS solutions at scale.

Different Microsoft Products

There’s a Microsoft that many of you know and use on a daily basis, with products including Microsoft 365, Microsoft office, Windows, Outlook, Word, and OneDrive among others. But then there’s a Microsoft you may not know much about including Microsoft AI, and Microsoft Azure, which is their cloud computing service.

How Wall Street Ranks Microsoft Stock

Morning Star believesAzure is the centerpiece of the new Microsoft, and that it has several distinct advantages, including the fact that it offers customers a painless way to experiment and move select workloads to the cloud. They have ranked the Microsoft stock with 3 stars. 

Seeking Alpha and Benzinga are both neutral on the MSFT stock at the time of writing.

What Invest Diva Thinks of the Microsoft Stock

Microsoft stock has been in my top-long term hold list in Invest Diva’sPremium Investing Group (PIG) where I go LIVE every single Tuesday to analyze over 20 assets and answer our members' questions.

Microsoft Stock Price - Technical Analysis

The Microsoft stock price has reached a new all-time high level. However, it may find resistance soon at around $200 or $210.

In that case, we could expect a pullback towards key Fibonacci retracement levels of $177, $168, and $161 respectively.

Microsoft Stock Price Technical Analysis

The price remains above the daily Ichimoku cloud. Medium term profit targets are at $227 and $238 respectively.

Please watch the above video for the full technical analysis.