---
title: "Microsoft's PE has become the same as Exxon Mobil's"
description: "JP Morgan: Due to concerns over AI disruption, technology sectors such as software have been severely impacted, leading to a broad rotation in the market towards value stocks in search of diversificat"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/276506070.md"
published_at: "2026-02-21T07:10:03.000Z"
---

# Microsoft's PE has become the same as Exxon Mobil's

> JP Morgan: Due to concerns over AI disruption, technology sectors such as software have been severely impacted, leading to a broad rotation in the market towards value stocks in search of diversification. However, the report assesses that the rally in value stocks has completed about 85%, trading has become crowded, and the risk-reward ratio has deteriorated. The valuation gap in price-to-earnings ratios between high-quality growth stocks represented by Microsoft and commodity stocks represented by Exxon Mobil has nearly disappeared, highlighting that the trading in value stocks has become excessively crowded

JP Morgan:

Due to concerns about AI disruption, technology sectors such as software have been severely impacted, leading to a broad rotation in the market towards value stocks in search of diversification. However, the report assesses that the rally in value stocks has completed about 85%, trading has become crowded, and the risk-reward ratio has deteriorated. The valuation gap in price-to-earnings ratios between high-quality growth stocks represented by Microsoft and commodity stocks represented by Exxon Mobil has nearly disappeared, highlighting that the trading in value stocks has become excessively crowded.

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## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.