Meta & Microsoft Are Both Cheaper than the S&P 500 (And I’m Buying)
MSFT showing 55% upside and META priced like a slow-growth utility. Generational Buying Opportunity.
Wall Street is panicking because big tech is spending billions on AI hardware, and they don’t see the immediate “payoff” yet. They see a money pit; I see the best buying opportunity of the decade.
I’m not interested in standing on the sidelines while the market wait-and-sees. While institutional investors hesitate, I am using the cash flow my portfolio already generates to secure my stake in the companies building the digital backbone of the next century. While the market frets over short-term costs, I am looking at long-term dominance.
I’m putting my money where my mouth is. Using the cash flow my portfolio is already generating, I am moving $8,000 more into Meta META 0.00%↑ and $4,000 more into Microsoft MSFT 0.00%↑.
I wanted to highlight some interesting points on why I believe MSFT and META are undervalued right now. I will cover the following:
Growth Catalysts
Price Targets
Earnings Metrics
Valuation
Valuation: March 2026 Snapshot
Before we dive into the specific analysis, let’s look at the numbers. The primary reason I am adding to these positions now is that the recent sell-off has pushed their valuations to levels that, quite frankly, make the rest of the market look expensive. Some of these companies trade at their lowest multiples over the last few years.
Meta is currently trading cheaper than the average S&P 500 stock, despite having significantly higher margins and growth potential. Microsoft is trading at its lowest forward multiple in three years. When you can buy the world’s best business models at a discount to the "average" company, you take it.
Microsoft (MSFT): Scaling the AI Utility
Wall Street is panicking over a tiny, 1% drop in growth for Microsoft’s MSFT 0.00%↑ cloud business. They are obsessing over a small detail while ignoring the fact that the company is actually getting much stronger.
Over the last six months, MSFT has declined by more than 18%.
The Yieldly Dashboard pulled in analyst data and states that there is an average upside potential of 55.3%. from the current levels.
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1. The $625 Billion Pre-Paid Tab
Microsoft’s $625 billion backlog is the ultimate safety net. While most mega-cap companies struggle to grow their contract base by 15%, Microsoft’s surged 110% in one year. This means even if they didn’t sign a single new customer, they have over half a trillion dollars in revenue already scheduled to hit the bank.
