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Top StoriesMarketWatch1h ago

This is the ‘most underappreciated’ driver for Microsoft’s business, according to one analyst

Investors understand Microsoft’s cloud-computing opportunities, but may not be giving enough credit to the revenue potential of its software business.

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AI SUMMARY

# Microsoft's Undervalued Software Revenue Stream An analyst argues that investors are overweighting Microsoft's cloud-computing prospects while underestimating the sustained revenue potential from its core software business, which could represent significant upside to current valuations. The commentary suggests the market may be mispricing Microsoft by not adequately accounting for the profitability and growth contribution of its legacy software operations alongside its Azure cloud expansion.

Content sourced from MarketWatch. Not financial advice.