Microsoft vs. Netflix: Which is the Better Buy?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 09 2026
0mins
Should l Buy MSFT?
Source: Fool
- Netflix Acquisition Failure: Netflix's attempt to acquire Warner Bros. Discovery for $27.75 per share, totaling over $80 billion, fell through due to Paramount's superior offer of $31 per share, leading to a stock rebound to $99.02, restoring some market confidence in its future performance.
- Microsoft's Stock Decline: Despite Microsoft's leadership in AI and solid quarterly results, its stock has dropped about 25% to $408.93, primarily due to market concerns over the return on its substantial AI investments, even as demand for its Azure cloud platform remains strong.
- Valuation Comparison: With Netflix's forward P/E ratio exceeding Microsoft's, the latter appears to offer better investment value, especially given their similar growth rates, making Microsoft's stock more appealing from a price-to-earnings perspective.
- Long-Term Investment Potential: While Netflix shows remarkable user stickiness, Microsoft's cloud computing business, if it continues to grow alongside its AI investments over the coming years, could yield higher long-term returns, despite investor caution regarding AI spending.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 369.370
Low
500.00
Averages
631.36
High
678.00
Current: 369.370
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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