Microsoft Shares Seen as Undervalued Despite Record Growth

Microsoft closed its fiscal year with impressive results, surpassing $100 billion in annual revenue for Azure and achieving record growth. Despite this, shares of Microsoft (NASDAQ:MSFT) have dropped by 2.3% over the past year, trading at $498.51.

The company's strong performance has been driven by its Intelligent Cloud segment, which grew 32%, with Azure jumping 43%. Management guided fiscal Q1 Azure growth to approximately 45% in constant currency.

According to 24/7 Wall St., the current stock price presents a rare setup: acceleration on top of a $678 billion backlog, with shares still below year-ago levels. The factor tipping the scale is Azure guidance of 45% constant currency for fiscal Q1.