From Nasdaq: 2025-05-09 07:00:00

Microsoft (NASDAQ: MSFT) has become the world’s largest company by market cap after reporting strong third-quarter fiscal year 2025 results, surpassing Apple (NASDAQ: AAPL). Its intelligent cloud segment saw a 21% revenue growth, with Azure posting a 33% increase, positioning Microsoft as a leader in cloud computing.

While Microsoft’s cloud business drove overall revenue up by 13% year over year, productivity and business processes only rose by 10% and more personal computing by 6%. Despite its impressive growth, Microsoft is now the most expensive stock in the Magnificent Seven group based on forward P/E ratio, making it a cautious buy rather than the best stock to buy currently.

Although Microsoft is highly valued, it is expected to post strong growth numbers in the future. When compared to other top-tier businesses in the Magnificent Seven group, Microsoft falls in the middle of the pack. While it may not be a screaming buy, it remains a solid investment choice due to its positioning in cloud computing and overall growth potential.



Read more at Nasdaq: Is Microsoft the Best “Magnificent Seven” Stock to Buy Right Now?