Microsoft Valuation Raises Questions About Buying at $483.36

Microsoft has had an inconsistent year in 2026, initially dropping after its fiscal Q2 report and then rallying on strong Q4 results. Despite the S&P 500 rising over 12% this year, Microsoft's stock is still down for the year. With a current price of $483.36, investors are wondering if now is the time to buy.

One reason to consider buying Microsoft is its exposure to the AI trend. The company's Copilot tool has gained 30 million paid seats and Azure's revenue grew 43% last quarter, making it Microsoft's fastest-growing division.

However, when looking at Microsoft's forward price-to-earnings ratio, it's not as cheap as it was before its Q4 report. It's still lower than most of the past two years but more expensive than Nvidia, Alphabet, and Amazon. Despite this, growth remains strong for these companies.

Microsoft is reasonably valued according to Keithen Drury, who thinks investors should look elsewhere for better deals. The three tech stocks mentioned offer more upside potential and are currently cheaper than Microsoft.