Microsoft: High-Margin Growth Points To A Premium Valuation

Core Insights - The software sector, once favored for its low marginal costs and recurring revenue, has recently experienced significant declines as investor sentiment shifts negatively [1] Group 1 - The capital markets have not been favorable to software companies lately, leading to massive drawdowns in the sector [1] - Investors are increasingly concerned about the sustainability of the software business model, which was previously seen as resilient due to its asset-light nature [1]