Microsoft: The Dumbest Sell-Off In Big Tech

Microsoft is rebounding after a sharp ~20% sell-off, with the author arguing the pullback is overdone. Strong fundamentals — double-digit revenue growth, cloud revenue above $50 billion, and 160% year-over-year Copilot adoption — support a bullish long-term thesis. The stock trades at its lowest forward earnings multiple in years and the author’s DCF fair value of $533.80 implies about 26% upside from current levels, framing MSFT as a compelling buy ahead of Q3 results. Noted risks include elevated CapEx, Azure capacity constraints, heavy exposure to OpenAI, and macro headwinds. Market impact: the piece presents MSFT as attractively valued, likely to encourage buy-side interest and downside-contrarian positioning among investors.