There seems to be a growing consensus on Wall Street about (NASDAQ: MSFT) stock. Shares have trounced the wider market so far in 2023, up around 40%, compared to the 31% spike in the Nasdaq Composite Index through early July.

Bulls are convinced that the software giant will see strong sales growth, potentially ignited by a rush of new productivity from artificial intelligence (AI) and machine learning. Optimists see a highly profitable business that generates unusually high levels of cash flow, too.

Bears might have a point, though, when they argue that Microsoft stock looks expensive, given its modest demand trends today. But which camp is right? Let's dive right in.

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Source Fool.com