Wall Street expects another strong quarter from Microsoft when the technology behemoth reports earnings next Wednesday. But at least a couple firms are backing off their most optimistic predictions for the stock. ...

Core Insights - Achieving a 19,000% portfolio growth is a long-term journey requiring patience and resilience through periods of stagnation [1][38] - Percentage growth is a more accurate measure of investment performance than dollar amounts, as it reflects the growth relative to the initial investment [3][4] - Long-term investment success is characterized by enduring business models, consistent reinvestment, and resilience during market volatility [30][31][33] Group 1: Case Studies of Successful Companies - Microsoft experienced a long period of stagnation from the early 2000s to the early 2010s, but total returns significantly improved when dividends were reinvested, highlighting the importance of patience [5][6] - Apple demonstrated exceptional long-term compounding, with returns reaching five-figure percentages, driven by sustained profit growth and a strong ecosystem [7][9] - NVIDIA achieved rapid returns over a shorter time frame, but this came with high volatility and significant drawdowns, illustrating the risks associated with faster growth [10][11][12] - McDonald's achieved substantial growth through steady global expansion and consistent profitability, emphasizing the role of reinvested dividends in compounding returns [13][14] Group 2: Investment Strategies and Principles - Investors should anchor expectations to a long time frame, as extreme outcomes typically require at least 20 years [21] - It is essential to expect long periods of market flatness, which are normal stages before significant compounding occurs [22] - Reinvesting dividends and profits is crucial for maximizing long-term returns, as seen in the cases of successful companies [23] - Gradually increasing contributions to investments is a reliable strategy for accelerating portfolio growth [24] Group 3: Identifying Future Investment Opportunities - Companies should be evaluated based on their enduring business models, consistent reinvestment engines, and resilience in the face of volatility [30][31][33] - Focusing on long-term trends and powerful economic forces is vital for identifying potential multi-decade compounders [34][35] - A strong balance sheet and a clear value proposition are essential traits for companies to withstand market downturns and continue growing [36]

Core Insights - Microsoft Corporation (NASDAQ:MSFT) is recognized as one of the best quantum computing stocks to buy for 2026, with a strategic focus on sustainability and carbon neutrality by 2030 [1] - The company has agreed to purchase a record 2.85 million soil carbon credits from Indigo Carbon, which is linked to regenerative agriculture in the US [2] Carbon Credit Purchase - The deal for the soil carbon credits is valued between $171 million and $228 million, with costs estimated at $60 to $80 per ton [3] - This initiative is part of Microsoft's broader goal to ensure that its operations facilitate more carbon removals than emissions globally [2] Market Position and Analyst Ratings - Goldman Sachs has initiated coverage of Microsoft with a "Buy" rating and a price target of $655, highlighting the company's strong competitive position in the AI sector [4] - Despite the positive outlook, there are suggestions that other AI stocks may offer greater upside potential with less downside risk [5]

Despite Microsoft ( MSFT ) continuing to deliver positive earnings surprises and revisions over the last few months, the stock is down by roughly 12% since my previous bullish writeup . Since there wereComing from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental analysis of public companies paid off and now I feel very confident in my inve ...

Core Insights - Microsoft (MSFT) has consistently delivered positive earnings surprises and revisions in recent months, yet the stock has declined by approximately 12% since the last bullish analysis [1] Company Analysis - The company has shown resilience in its earnings performance, indicating strong operational fundamentals despite the stock price decline [1] - The decline in stock price may present a potential buying opportunity for investors looking for value in a company with solid earnings growth [1] Market Perspective - The analyst emphasizes the importance of fundamental analysis in navigating the complexities of technology stocks, suggesting that a deep understanding of risk and reward is crucial for investment decisions [1] - The article aims to provide accessible insights for both seasoned and novice investors, fostering a collaborative exploration of market opportunities [1]

Core Insights - Microsoft provided the FBI with recovery keys to unlock encrypted data on three laptops as part of a federal investigation into fraud related to the Pandemic Unemployment Assistance program in Guam [1][3] - BitLocker, the full-disk encryption technology used by modern Windows computers, allows Microsoft to access recovery keys stored in its cloud, enabling law enforcement to decrypt drives [2][4] - Microsoft receives an average of 20 requests per year from authorities for BitLocker recovery keys [4] Privacy and Security Concerns - The practice of handing recovery keys to Microsoft raises privacy risks, as highlighted by cryptography expert Matthew Green, who pointed out the potential for hackers to compromise Microsoft's cloud infrastructure and access these keys [5] - Green emphasized that Microsoft's inability to secure critical customer keys is becoming a significant concern, distinguishing it from other companies in the industry [5]

Core Viewpoint - Analysts at Cantor Fitzgerald and UBS anticipate that the company will exceed earnings estimates when it reports on January 28 [1] Group 1 - Cantor Fitzgerald and UBS are optimistic about the company's upcoming earnings report [1]

Group 1 - The core viewpoint of the news highlights that major technology stocks experienced an upward trend, with AMD rising nearly 4% and TSMC, Micron Technology, and Microsoft increasing by over 2% [1] - NVIDIA, Meta, and Amazon also saw gains of over 1%, indicating a positive sentiment in the technology sector [1]

Group 1 - AMD shares increased by nearly 4% [1] - TSMC, Micron Technology, and Microsoft shares rose over 2% [1] - Nvidia, Meta, and Amazon shares gained over 1% [1]

Core Viewpoint - Analysts expect Microsoft to report quarterly earnings of $3.88 per share, reflecting a year-over-year increase of 20.1%, with revenues projected at $80.23 billion, up 15.2% from the previous year [1] Revenue Estimates - Revenue from 'Productivity and Business Processes' is estimated at $33.49 billion, indicating a year-over-year change of +13.8% [4] - 'Intelligent Cloud' revenue is projected to reach $32.41 billion, showing a significant increase of +26.9% from the prior-year quarter [4] - 'More Personal Computing' revenue is expected to be $14.27 billion, reflecting a decrease of -2.6% compared to the previous year [5] - 'LinkedIn Revenue' is anticipated to be $5.05 billion, indicating a year-over-year increase of +10.1% [5] - Revenue from 'Dynamics products and cloud services' is expected to be $2.23 billion, with a year-over-year change of +16.8% [6] - 'Product Revenue' is projected at $17.80 billion, reflecting a +9.7% change from the prior-year quarter [6] - 'Service and other' revenue is estimated to reach $62.70 billion, indicating a +17.4% change from the previous year [6] Percentage Change in Revenue - The estimated percentage change in revenue for 'Productivity and Business Processes' is 13.8%, compared to 14.0% reported in the same quarter last year [7] - 'Intelligent Cloud' is expected to see a percentage change of 26.9%, up from 19.0% in the previous year [7] - Overall, the forecasted percentage change in revenue is 15.1%, compared to 12.0% from the previous year [8] Unearned Revenue Estimates - Long-term unearned revenue is projected to reach $3.43 billion, up from $2.54 billion reported in the same quarter last year [8] - Short-term unearned revenue is expected to be $51.39 billion, compared to $45.51 billion reported in the same quarter last year [9] Stock Performance - Over the past month, Microsoft shares have decreased by -7.6%, while the Zacks S&P 500 composite has increased by +0.6% [9] - Microsoft holds a Zacks Rank 2 (Buy), indicating a potential to outperform the overall market in the upcoming period [9]