Stocks

Microsoft and Oracle Stocks Are Cheap Here

Recent articles in GuruFocus highlight their value and focus on integrating AI into their products

Photo by Iyus sugiharto on Unsplash

Microsoft (MSFT)

Microsoft just reported yesterday (April 25) excellent earnings for its quarter ending March 31, highlighting its Cloud and AI products.

Effectively, the company is now a veritable cash cow. It reported that free cash flow (FCF) surged to $21 billion during the quarter alone. Some tech companies can’t even make that much in a year.

This FCF was 18% higher than the prior year period and 130% in the previous quarter.

I described Microsoft’s amazing FCF results in today’s Barchart article:

Microsoft Shows Massive FCF Growth Despite High AI Spending - MSFT Looks Undervalued

Moreover, I also did an in-depth analysis in a GuruFocus article (see below) of Microsoft’s ongoing FCF margins and how it leads to a price target prediction. My price target is $503 per share, or 23% higher than today’s price of $409.44: