Microsoft: Don't Buy The Dip, A 30% Correction Is Still Ahead

Dmytro Lebid2.68K FollowersFollow5ShareSavePlay(14min)Comments(36)SummaryMicrosoft (MSFT) is rated 'Sell' due to overvaluation and a likely 30% downside as it transitions to an AI infrastructure model.MSFT's aggressive CapEx, projected to reach 33% of revenue by 2026, risks trapping the company in a cycle of high reinvestment and declining margins.Competitive threats from specialized AI agents and open-source models are eroding MSFT's pricing power and user connection, pressuring both growth and profitability.MSFT's valuation premiums versus peers are unsustainable as its business model shifts from high-margin software to capital-intensive infrastructure, warranting multiple compression. lcva2/iStock Editorial via Getty Images Investment Thesis There is a large group of investors who believe that the recent decline in Microsoft (MSFT) stock is a mistake, that the company's market value will not only recover its lost groundThis article was written byDmytro Lebid2.68K FollowersFollowMy professional journey in the investment field began in 2011. Today, I combine the roles of an Investment Consultant and an Active Intraday Trader. This synergistic approach allows me to maximize returns by leveraging deep knowledge in economics, fundamental investment analysis, and technical trading.

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