Nasdaq Sell-Off: You Won't Believe What Stock Is Near a 52-Week Low

Core Viewpoint - Microsoft stock is currently trading at a 52-week low despite strong fundamentals and recent positive developments in its quantum computing technology [1][10]. Company Performance - Microsoft has experienced an 8.7% decline in stock price, contributing to its 52-week low, while the Nasdaq index has fallen 13% since its all-time high [1][10]. - The company recently announced a significant advancement in quantum computing with the "Majorana 1" chip, which could potentially support one million qubits [3]. - Despite the stock decline, analysts from UBS and Goldman Sachs have reaffirmed their "buy" ratings, indicating confidence in Microsoft's future performance [5]. Revenue Breakdown - As of 2023, Microsoft derives 75% of its revenue from two primary sources: "Intelligent Cloud" (43%) and "Productivity and Business Processes" (32%) [6][7]. - These two segments contribute over 82% of Microsoft's operating profit, resulting in an impressive operating profit margin of 49.2% [8]. Market Context - The current stock price reflects a valuation of 30 times earnings, slightly above the average S&P 500 stock at 28 times earnings, suggesting that the stock is more affordable now compared to previous valuations [13]. - The company faces potential risks from trade tariffs, particularly concerning semiconductor imports from Taiwan, but its high operating profit margin may mitigate these impacts [11][12].