Short-Sale Set Up - MSFT 'AI Mania'
|Published:||26 Apr 2023 10:40 ET|
Microsoft (MSFT) is a potential shortable gap up as it has been seeing its cloud-based service growth slow over the last several quarters. It's PE multiple at 29 seems excessive given its overall slowing sales and earnings also over the last several quarters. It's latest reported quarter show only a 10% increase in earnings and a 7% increase in sales though was a touch higher than the prior quarter. How does it double in value in the coming years from a $2 trillion company to a $4 trillion company? Many have said its involvement in AI could spur growth but in their latest report there is no mention of revenue from AI. AI will impact the future no doubt but right now, it seems to be overhyped.
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