Microsoft and Amazon Still Shine Despite Underwhelming Performance
The 'Magnificent Seven' stocks have been driving market gains since 2023. These seven companies, including Nvidia, Apple, Microsoft (MSFT -1.64%), Amazon (AMZN -2.02%), Alphabet, Meta Platforms, and Tesla, account for a third of the S&P 500's performance.
MICROSOFT'S STOCK HAS STRUGGLED IN RECENT MONTHS, but it has put key concerns to rest with its impressive fourth-quarter fiscal 2026 earnings report. The company's AI spending is a major area of focus, and Azure's revenue increased by 43% year over year (YoY). Its 'Intelligent Cloud' segment accounted for over 39% of its operating income.
Microsoft is a great stock for long-term investors due to its widespread use in enterprise software, hardware, and cloud services. It has a competitive moat conducive to longevity and pays an underrated dividend with a yield of around 0.7%. The company has increased its annual dividend for 23 consecutive years.