Investors are enthusiastic about (NASDAQ: MSFT) right now. The tech giant's 42% gains so far in 2023 are trouncing the 30% gain in the Nasdaq Composite and the stock recently exceeded all-time highs set in early 2022.
The wider tech rally is obviously contributing to this performance, but it's also easy to see why Wall Street is excited about the potential for this particular company. Microsoft has many large growth avenues available to it across areas like cloud services, artificial intelligence (AI), video gaming, and productivity software.
But investors should also note that shares aren't cheap following the latest rally. With that valuation challenge in mind, let's look at some reasons to buy the stock, along with a few factors that weigh in favor of caution.
Source Fool.com