economy
March 4, 2026
Investors say 'safest' software play Microsoft looks cheap at current prices
Two investors told CNBC's "Halftime Report" on Wednesday that they recently added to their positions in Microsoft.
TL;DR
- Microsoft, a "Magnificent Seven" stock, is down 15% this year due to fears of AI disruption in the software sector.
- Investors Steve Weiss and Bill Baruch have added to their Microsoft positions, viewing the stock as "extraordinarily cheap" and a potential long-term buying opportunity.
- Weiss notes Microsoft's early investment in OpenAI, positioning it as a major beneficiary or at least neutral to AI, making its current valuation attractive.
- Baruch highlights that Microsoft is trading two standard deviations below its long-run price-to-earnings ratio, suggesting a support level.
- Joe Terranova calls Microsoft the "safest play" for stability in software names and believes it will rise if the sector rebounds, dismissing concerns about Azure's growth.
- Microsoft is seen as a proxy for OpenAI, similar to Softbank.
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