Get Ready To Back Up The Truck On Amazon And Microsoft

Posted On March 13, 2023 6:16 am
By: Dividend Sensei

The Fed is now expected to hike rates to 5.5% or even 5.75%, effectively 7.5% to 7.75%, including QT.

The bond market is convinced a recession is coming in late 2023 or early 2024. Stocks are likely to fall 10% to 15% from here.

But the world’s best cloud computing titans, Microsoft Corporation and Amazon.com, Inc., are good for table-pounding buys today!

Amazon is 55% historically undervalued and has the potential for 7.5x returns in the next six years and could more than triple by 2025.

Microsoft is 5% undervalued and offers a 120% upside over the next six years and 14% long-term returns.

At its Ultra Value price of $174 (35% discount), its six-year return potential rises to 200%.

However, the lowest-risk U.S. company is unlikely to fall 31% and trade at 10X cash-adjusted earnings.

If you don’t buy some AMZN and MSFT today, you’ll likely regret it in a few years.

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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.