Microsoft’s revenue growth has accelerated in its most recent quarter, with profits rising at double-digit rates. The company is well-positioned in AI and cloud computing. However, with shares up 42% and a high valuation, investors may want to hold rather than buy. Microsoft’s dividend and share repurchase program offer stability.

The company’s fiscal third-quarter results show strong performance, with a 13% revenue increase year over year. Cloud and AI segments are driving growth, with a 21% revenue increase from intelligent cloud. Productivity and business processes are also up 10%. Microsoft’s long-term growth potential is evident, but its high valuation raises concerns.

Investors are watching Microsoft closely ahead of its earnings release on July 30. The stock has seen significant growth but faces questions about its rich valuation. The company’s impressive momentum and dividend payment offer stability, but the high P/E ratio may deter some buyers. Microsoft remains a strong dividend stock with room for growth.

Read more at Yahoo Finance: Buy Microsoft Stock Now, or Wait for a Pullback?