What happened
Signal Advisors Wealth increased its stake in Microsoft (MSFT 0.44%) by acquiring 10,122 additional shares during Q2 2025, according to a July 9, 2025, SEC filing. The trades amounted to $4.39 million for the quarter and raised the fund’s total Microsoft holding to 36,773 shares as of June 30, 2025.
What else to know
Microsoft now represents 1.46% of Signal Advisors Wealth’s 13F AUM as of Q2 2025.
The top five holdings after the filing (as of June 30, 2025):
- SPDR Portfolio S&P 500 ETF (SPLG): $46.4 million (3.7% of AUM).
- SPDR S&P 500 ETF Trust (SPY): $40.7 million (3.2% of AUM).
- Aptus Collared Investment Opportunity ETF (ACIO): $31.3 million (2.5% of AUM).
- Global X Nasdaq-100 Covered Call ETF (QYLD): $29.4 million (2.3% of AUM).
- Vanguard Tax Managed Fund FTSE Developed Markets ETF (VEA): $27.2 million (2.2% of AUM).
Other data points to be aware of:
- Microsoft stock closed at $503.32 on July 11, 2025.
- Microsoft stock is up 10.9% over the past year, underperforming the S&P 500 by 0.75 percentage points.
- Microsoft's forward price-to-earnings ratio is 37.7.
- Five-year revenue compound annual growth rate is 14.3%.
Company overview
| Metric | Value |
|---|---|
| Current price | $502.98 |
| Revenue (TTM) | $270.01 billion |
| Net income (TTM) | $96.64 billion |
| Dividend yield | 0.66% |
Note: TTM data is as of March 31, 2025. Current stock price is as of mid-afternoon on July 14, 2025.
Company snapshot
- Offers a diversified portfolio of products and services, including cloud platforms (Azure), productivity software (Office 365, Teams), enterprise solutions (Dynamics 365), operating systems (Windows), and hardware (Surface, Xbox).
- Generates revenue primarily from software licensing, cloud subscriptions, enterprise services, and device sales.
- Serves global enterprise, government, small and medium-sized businesses, and individual consumers across multiple industries and geographies.
Microsoft is a global technology leader with a broad product ecosystem spanning software, cloud infrastructure, and devices. The company’s strategy focuses on scalable cloud solutions and integrated productivity tools. Its competitive advantage stems from deep enterprise relationships, robust cloud infrastructure, and a strong track record of innovation.
Foolish take
Microsoft is one of the world's most dominant technology companies and, through its partnership with OpenAI, a leader in artificial intelligence (AI). The tech behemoth has an incredibly robust balance sheet, strong cash flow, and has grown its top and bottom lines by double-digit percentages year over year for each of the last 5 quarters (with the single exception of Q2 2024 when its net income grew by 9.7%). This growth is being driven, in large part, by its cloud computing segment which grew by 22% year over year last quarter.
From this exceptionally strong financial position, the company is investing heavily in future-proofing its cloud infrastructure to continue to keep up with the demands of AI. In 2025, Microsoft is on track to spend roughly $80 billion on AI-related infrastructure.
While it’s clear Microsoft is executing, investors should be aware of some risks, namely the fact that the lion’s share of Microsoft’s cloud revenue comes from OpenAI, and the two companies' relationship has become somewhat strained. There is a possibility that a time comes when OpenAI shifts to another cloud provider.
Microsoft stock currently trades at a trailing price-to-earnings ratio (P/E) of 39, fairly high compared to its 24.8 average for the last 20 years. I think the company is a solid addition to a well diversified portfolio, but with this valuation, I think there are better options amongst big tech.
Glossary
- 13F reportable assets: Securities that institutional investment managers must disclose quarterly to the SEC, showing their holdings.
- Assets under management (AUM): The total market value of investments managed by a fund or investment firm on behalf of clients.
- Portfolio position: An individual investment or holding within a fund or investor's overall portfolio.
- Dividend yield: Annual dividend income expressed as a percentage of the stock's current price.
- Forward price-to-earnings ratio: A valuation metric comparing a company's current share price to its expected future earnings per share.
- TTM (Trailing Twelve Months): Financial data calculated for the most recent 12-month period, often used for performance analysis.
- Cloud platforms: Online services providing computing resources, storage, and software over the internet, such as Microsoft Azure.
- Software licensing: The process of granting users legal access to use software under specific terms and conditions.
- Cloud subscriptions: Ongoing payments for access to cloud-based software or services, typically billed monthly or annually.
- Fund holding: The amount of a particular security or asset owned by an investment fund.
- Mid-sized position: A holding that represents a moderate percentage of a fund's overall portfolio, neither small nor among the largest.
- Actual trades: Transactions that have been executed and settled, reflecting real changes in a portfolio's holdings.