Microsoft Corporation
Thesis
Rupal Bhansali views Microsoft as an enterprise staple deserving of a valuation multiple similar to consumer staples. Despite market perceptions of Microsoft as a high-risk technology company, Bhansali believes its dominance in the enterprise market with products like Outlook and Office 365 provides a stable and recurring revenue stream, leading to significant returns with low risk.
Did it work?
The pitch is a qualitative long thesis that Microsoft should be re-rated as an 'enterprise staple' with a staples-like multiple, but no price performance and no time elapsed are provided. Without return data or evidence that the re-rating/revenue-stability dynamic actually occurred, there is nothing to confirm or invalidate the thesis. The verdict must remain open.