- Entry
- $386.50
- Now
- $400.45 +3.6%
- Target
- $540.00
- Score
- —
The market calling Microsoft at 39x FCF expensive reminds me of Amazon. For two decades Amazon looked expensive on FCF while it poured money into data centers and logistics. The same overreaction looks like it is hitting Microsoft now: its worst month since 2000, already down two time around 34% from its October high, mostly because a AI Capex spend has crushed reported free cash flow. The bear case is real: * **Is the capex actually turning into revenue?** So …
— ORIGINAL POST ·
The AI capex that crushed Microsoft's FCF is the exact reason it's mispriced the market made the identical judge on Amazon for two decades. 39x on FCF is it really expensive?
· r/ValueInvesting
· Jun 29, 2026