Microsoft And Amazon: 5 Critical Facts Investors Need To Know After Earnings

Microsoft And Amazon: 5 Critical Facts Investors Need To Know After Earnings

Posted On August 11, 2022 7:19 am

Microsoft and Amazon are both world-beater blue-chips that have made millions of investors rich and will likely keep minting millionaires in the future.

Both delivered solid earnings, with their cloud units firing on all cylinders, posting over 30% growth. They remain the two powerhouses of this potential $10 trillion market in 2035.

Microsoft is the quality king of tech and a 100% quality, very low-risk 13/13 ultra-SWAN (sleep well at night) blue-chip. It’s arguably the world’s greatest company.

Amazon is the hyper-growth king of ultra-SWANs and 34% historically undervalued, trading at just 17.1X forward cash flow.

Microsoft is 4% historically overvalued but still capable of delivering 11% annual returns through 2025, almost doubling over the next five years (2X the market’s consensus returns).

But Amazon’s combo of deep value + hyper-growth could deliver 41% annual returns through 2024 and 350% returns through 2027, a Buffett-like 33% CAGR return potential that’s 4X more than MSFT and 7X more than the S&P 500.

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Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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