economy
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.