Similar to $GOOGL (+0,32 %) I see Microsoft as a very insulated company from the current heated trade situation, while yes, heightened fear of recession can cause limited spending by companies, the services Microsoft provides are essential, whether the corporations using its services have a good year or not. And there should also be a bright future ahead, Microsoft is not only led by a management that has proven to be able to grow revenue consistently as well as earnings aggressively, but also has a long runway ahead with its fast growing Cloud business Azure and greater AI implementation into the Office365 suite. Microsoft currently trades at a forward P/E ratio of 30, which puts the company at a fair valuation, considering the unique market position Microsoft currently finds itself in. Or as Warren Buffett likes to put it: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.“
