Microsoft is now the cheapest "Magnificent Seven" stock. Does that make it a buy?

MSN
2026.03.21 21:59

Microsoft is now the cheapest stock in the "Magnificent Seven" with a P/E ratio of 25, the lowest since 2022. Despite challenges, including a significant backlog tied to OpenAI and high capital expenditures, Microsoft maintains strong financials with $89 billion in liquidity and $97 billion in free cash flow. Revenue increased by 18% year-over-year, and net income rose by 36%. Analysts suggest that despite concerns, Microsoft could be a buy due to its solid financial position and potential growth in AI investments.