Is It Too Late To Buy Microsoft Stock After Its Summer Run?

Image from Pixabay Microsoft (MSFT) stock is up about 30% in three months, including a 19% jump in the two trading days after its July report. That makes buying now feel late. Yet the stock is slightly lower than a year ago, while the S&P 500 (SPY) gained about 17%. With the stock trading near $500 a share, Wall Street consensus is already banking on Microsoft beating its own forecast again. How Expensive Is Microsoft Stock After The Run? On earnings, it looks fair. Microsoft trades at about 27 times its profits over the past year, below its three-year average of about 32 times. But those profits rest on a net margin of about 40%, the highest in at least five years. A lower multiple on peak margins is fair rather than cheap.