The Motley Fool·2026-02-01 18:15Group 1: Microsoft - Microsoft has averaged annual returns of 25% over the past decade and continues to grow, with Q1 fiscal 2026 revenue up 18% year over year and net income rising 12% [2] - The company has a market cap of $3.2 trillion, with a current stock price of $429.91 and a forward P/E ratio of 29, slightly below its five-year average of 30 [3][4] - Microsoft is heavily investing in artificial intelligence, with CEO Satya Nadella emphasizing the importance of AI and cloud services for future growth [4] - The company has a gross margin of 68.59% and a dividend yield of 0.79%, with dividends increasing from $2.09 per share in 2020 to $3.40 recently [4] Group 2: Netflix - Netflix has averaged annual gains of 24% over the past decade, with Q4 2025 revenue reaching $12 billion, up nearly 18% year over year, and net income increasing by 29% [5] - The company’s advertising revenue has significantly contributed to its growth, with ad revenue growing more than 2.5 times to over $1.5 billion in 2025 [5] - Netflix's current market cap is $353 billion, with a stock price of $83.47 and a forward P/E ratio of 27, which is below its five-year average of 33 [6][7] - Despite a 12% decline in stock price over the past year due to acquisition uncertainties, the stock is considered appealingly valued [7]