“Growth should accelerate in 2H24 and then will see easy compares into 2025, while margins can expand, and there is room for capital deployment... We would take advantage of the pullback and remain Buy rated on the stock.”

 “The company is well positioned to capture share of Gen-AI revenue via its broad suite of AI services and productivity-centric focus in an efficient manner that leverages the playbook from its Azure build out... We believe Microsoft is one of the most compelling investment opportunities in the technology industry and across sectors.”

 “Inter-sector and pairwise stock correlations remain at historic lows suggesting it is fertile ground for active management. Yet, market returns, earnings upside, and institutional investor exposure remain highly concentrated in Big Tech... To ‘broaden’ sources of returns we think seeking elements of the fundamental characteristics of Big Tech outside in the rest of SPX (and beyond) can be a good starting point to deal with a concentrated market.”

 “We expect the 1Q sales & earnings results, attractive brand positioning, and upside to estimates support further gains for shares... CMG maintains among the highest quality growth in the sector, w/ leading traffic momentum, & a resilient customer base, providing still compelling share returns in our view, even following YTD outperformance and at current valuation.”

 “Looking forward, our checks pointed to better-than-expected 2Q deal pipelines. Large enterprises who had historically been averse to 3rd party solutions and relied on home-grown ITSM/ITOM platforms, are beginning to make the shift to ServiceNow’s product set given the reliability, sustainability, and breadth of solutions found within the platform.”