Microsoft Unscathed: Why This Investor Stands Firm Amidst Turbulence

A long-term investor's perspective on Microsoft is that it's a diversified tech company with a strong track record of growth. The author has held onto Microsoft shares for over 10 years and sees no reason to sell them now, despite some underperformance this year.

Microsoft's diversification is one of its greatest strengths, with a wide range of software and hardware products, including the world's second-largest cloud platform Azure, Xbox, and LinkedIn. The company has over a billion users across various platforms, making it a crucial part of many businesses and individuals' daily lives.

The author notes that Microsoft is a 'certified cash machine,' with impressive revenue and profit growth over the past decade. In its fiscal year 2026, the company generated $331.8 billion in revenue, $155.2 billion in operating income, and $133.7 billion in net income, representing 18%, 21%, and 31% year-over-year increases, respectively.

The author also praises Microsoft's AI spending plans, which have been a source of concern for some investors. However, the company's recent earnings show a clear return on investment from its AI efforts, with Azure reaching $100 billion in revenue for the first time and total Microsoft Cloud revenue increasing 27% year-over-year to $214 billion.